Service offerings are now the most prominent occupiers of space within the Palm Beach retail market on Gold Coast, according to new research from Commercial Agents Tara Imlach and Greg Watson.

As part of its latest Between the Lines brief, the agents conducted a survey of the Palm Beach retail precinct, which includes 159 shop fronts with a total estimated NLA of 19,235sqm.

The results indicated occupancy levels have been strong in the region with vacancy of just 4.38 per cent. 

Beauty-related services were found to be the biggest occupiers, followed by medical, with more traditional services such as banks have reduced their holdings in recent years making way for gyms and other health-related retailers which cater for both local and visitor trade.

The survey also indicated that food retailing was a major drawcard for this location, accounting for close to a quarter of the total retail space in Palm Beach.

Ray White Commercial GC South Senior Sales and Leasing Executive, Greg Watson, said the retail environment favoured some more than others.

"We have seen categories such as clothing and soft goods, household and personal goods all reduce holdings with many retailers finding the current climate difficult to compete with online offerings or
larger retail centres," he said.

"Retail rents in this location can vary depending on the size, quality and configuration of the space, recent transactions have resulted in net face rents ranging from $450/sqm to $600/sqm with smaller, modern facilities commanding a higher rate.

"This has not gone unnoticed by the investor market with sales during late 2019 achieving yields in the 5.85 per cent to 7 per cent range depending on quality and lease covenant."

The survey identified a large volume of office stock in the Palm Beach precinct, made up of a mixture of new, modern office suites and older-style above shop, or converted office premises.

According to the report, Palm Beach has a total office nett lettable area of 13,398 sqm with an estimated vacancy rate of just 3.28 per cent, well below the rates achieved in more traditional office markets of Surfers Paradise, Southport or Bundall. 

The data indicates office rents have trended up to $350/sqm net for more modern facilities, while yields have averaged in the 6.50 per cent to 7.50 per cent range during 2019.

Click here to download the full report.

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