The office vacancy rate in the Sunshine Coast has declined further, casting a spotlight on the lack of supply set to come online, according to the Property Council of Australia’s January 2023 Office Market Report, released today.
Over the six months to January 2023, office vacancy on the Sunshine Coast hit four per cent after falling from seven per cent in 2022 and from 13.2 per cent in 2021 as businesses continue to converge on the growing region.
Queensland Executive Director of the Property Council Jen Williams said that this shrink in vacancy was fuelled by 5,920 square metres of net absorption in an office market that is booming.
“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,” Ms Williams explained.
“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,” she said.
Chair of the Property Council’s Sunshine Coast committee and Director at CBRE Brendan Robins, explained that 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,” Mr Robins said.
“Areas like the Maroochydore CBD have some of the tightest vacancy rates in the country, we estimate it to be sub two 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,” he said.
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.
