Office vacancy rates on the Sunshine Coast are continuing to decline, according to a report released last week.
Mirroring a similar shortage in the housing market, the Property Council of Australia’s January 2023 Office Market Report reveals what it says is a lack of supply set to come online.
The office vacancy rate on the Sunshine Coast at the end of 2022 hit 4 per cent after falling from 7 per cent in 2021 and 13.2 per cent in 2020.
“This strong demand for office space on the Sunshine Coast highlights the health of the region’s economy and the ongoing appeal for investors and businesses,” Queensland executive director of the Property Council Jen Williams said.
“However, it is important to caution that in order to maintain this strong growth the current pipeline of stock must be increased.
“Typically, a reduction in office vacancy is a positive sign for the industry but vacancy rates on the Sunshine Coast have become so tight that it will be difficult to service demand from businesses looking to invest in the region.”
CBRE director and new chair of the Property Council’s Sunshine Coast committee Brendan Robins said most of the prime office space had been quickly absorbed by the market.
“Absorption of built space has been very strong, it is unlikely that this pressure will ease in the foreseeable future,” he said.
“Areas like the Maroochydore CBD have some of the tightest vacancy rates in the country, we estimate it to be sub-2 per cent.
“Normally, in any office market there is a healthy level of activity in the sub-lease space, but currently there are only a handful of sub-lease opportunities.
“With no significant new buildings to be delivered in the next 18 months, the reality is that some businesses will find it very difficult to find adequate office accommodation.”
Office vacancies are calculated on whether a lease is in place for office space, not whether the tenant’s employees are occupying the space or working from home. The data is compiled by the Property Council’s national research team across the country.
The figures cover the Sunshine Coast local government area and do not include Noosa.
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