The vacancy rate on the Gold Coast changed from 6.4 per cent in January 2024 to 6.2 per cent in July 2024 due to strong demand.
Queensland Executive Director of the Property Council Jess Caire explained that the Gold Coast had one of the tightest office vacancy rates in the country and there were limited options for businesses looking to expand.
"The Gold Coast has the lowest vacancy rate of any Australian office market recorded as part of our July office market figures," Ms Caire said.
"We have seen vacancy hovering around six per cent on the Coast for a while now which is extremely low compared to most office markets.
"It illustrates the significant interest of investors and businesses in the Gold Coast and also South-East Queensland more broadly.
"However, with vacancy rates as low as they are at currently it is difficult for prospective businesses get a foothold on the Gold Coast as there simply isn't enough suitable office space.
"Fortunately, there is some new space set to come online at the back half of this year which should help ease pressure on the market and provide businesses with more options as to where they base themselves.
"However, right around South-East Queensland the delivery of new office stock is not keeping pace with demand, and it will be essential for policymakers to work with industry to identify solutions to bring new office buildings out of the ground to fully maximise future demand," Ms Caire said.
CBRE Senior Director Tania Moore explained that the competitive Gold Coast office market made it difficult for new businesses to establish themselves on the Gold Coast.
"The Gold Coast office sector has been robust throughout the first half of 2024 with limited opportunities across all building grades rendering it challenging for new occupiers to enter the market.
"Most current occupiers are typically renewing leases unless they have a fundamental shift in space requirements and this in turn has carried over to strong rental growth.
"The major addition of new supply in the second half of 2024 will be 33 Scarborough Street, Southport, which after refurbishment will add 3,000sqm to the Gold Coast market.
"Despite this the market dynamics suggest that with the expected limited new supply over the next 2-3 years, the upward trend in rental growth is likely to persist, which will hopefully improve the financial prospects of new developments progressing to construction," Ms Moore said.
