A reduction in space requirement has fuelled an increase in vacancy across all precincts of the Gold Coast office market in the first half of 2019, research from Ray White has found.

Ray White Commercial's Between the Lines Gold Coast Office Market Small Suites report, released this month, indicated the market had seen a sizeable increase in vacancies for the opening six months of the year, rising to 12.9 per cent from 11.6 per cent in January.

According to the report, This represents 60,641 square metres of vacant stock, with the six-monthly net absorption recorded at -6,850 square metres.

At a glance:

• Ray White Commercial's Between the Lines Gold Coast Office Market Small Suites report has revealed a rise in vacancies within the Gold Coast office market throughout the first six months of 2019.
• According to the report, the vacancy rate has increased to 12.9 per cent from 11.6 per cent in January.
• The report identified Surfers Paradise as the best performing sub-market during the period.

Ray White Head of Research Vanessa Rader said the overall vacancy rate had been moving in a downward trajectory since the market trough in 2011 before stabilising in line with the improvement in employment demand.

"The Gold Coast office market has historically been known for volatility," she said.

"However, in the past few years, this has been more tempered.

"Overall demand for quality, high yielding investments and the desire for small business to locate in an affordable yet desirable location has kept and will keep the commercial office market moving on a smooth course."

The report identifies Surfers Paradise as the best performing sub-market of the pack, having experienced a vacancy increase of only 80 basis points to 10.5 per cent.

Bundall and Broadbeach have both had a 1.8 percentage point increase compared to January results to 11.2 per cent and 11.7 per cent, respectively.

The office vacancy rate around the different Gold Coast precincts. Source: Property Council of Australia 

The report states that the small size of the markets can result in vast volatility.

The more established office markets of Southport and Varsity Lakes/Robina both suffered from larger vacations, keeping vacancies elevated at 15.1 per cent and 13.2 per cent, respectively.

Ms Rader said that, overall, the Gold Coast office market continued to be an attractive location for South East Queensland operations.

"Many quality accommodation options at attractive prices has not gone unnoticed to a growing number of small businesses looking for the perfect combination of career and lifestyle," she said.

"Results in this market are often slow-moving, with limited change in the rental landscape over the past few years due to the sometimes-volatile vacancy levels.

Investment, however, has continued as buyers look for quality yielding investments or self-funded accommodation options for their small businesses."

Click here to view the full report.

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