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Peregian Digital Hub - Tenancy Agreement · Report
GENERAL COMMITTEE MEETING 8 SEPTEMBER 2026
7.2.1 PEREGIAN DIGITAL HUB - TENANCY AGREEMENT
Author Director Digital Hub and Innovation, Chris Boden
Peregian Digital Hub | Strategy and Environment
Index Subject \ 102.01 \ Digital Hub
Attachments 1. Confidential Attachment 1 – Leasing Overview - IAW
Section 254D(3) of the LG Regulation 2012 - this is not publicly
available as it conta
2. Confidential Attachment 2 – Lease Proposal - IAW
Section 254D(3) of the LG Regulation 2012 - this is not publicly
available as it contain
EXECUTIVE SUMMARY
Council has secured a prospective new tenant for Tenancy C, an office space of approximately 75
m² at the Peregian Digital Hub. The tenancy became available when Cova AI elected not to renew
after its initial term ended in mid-July 2026. Noosa Council has secured a new multi-year lease with
a new tenant which would restore income from the space and maintain high occupancy at the Hub.
The proposed tenant, HubMind, is a Noosa-based AI services business that helps established,
owner-led businesses adopt AI in their operations. Its three founders have been members of the Hub
for several years and intend to make the Hub the company’s primary working base and community
home. Colliers publicly marketed the tenancy, assessed HubMind against Council’s criteria and
scored the application 90 out of 100.
Hubmind Pty Ltd has offered a three-year lease, with one three-year option, at the asking market
rent. For the first four months, rent and outgoings would be charged at a lower 45 m²-equivalent rate
as the company establishes itself. The full 75 m² rent and outgoings would apply from 1 February
2027. This is equivalent to a 1.3 month rental incentive.
RECOMMENDATION
That Council:
A. Note the report by the Director, Digital Hub & Innovation to the General Committee dated 8
September 2026 regarding the proposed commercial lease of Tenancy C at the Peregian
Digital Hub; and
B. Agree to enter a commercial lease for Tenancy C at the Peregian Digital Hub, Peregian
Beach, to HubMind Pty Ltd for a three-year term with one three-year option, as generally
outlined in the report.
REPORT
The purpose of this report is to seek Council approval to enter into a new lease for commercial office
space at the Peregian Digital Hub.
Sourcing and evaluation of prospective tenants for Tenancy C was undertaken by Colliers, Council’s
contracted provider of Property Management Services, in accordance with the Local Government
Regulation 2012 and guided by the Sound Contracting Principles set out in the Local Government
Act 2009.
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GENERAL COMMITTEE MEETING 8 SEPTEMBER 2026
The tenancy was advertised from 22 May 2026 through premium listings on three commercial
property websites and advertisements in Noosa News on 5 and 12 June. No formal applications
were received by the 14 July deadline. Colliers then contacted parties that had made enquiries and
received HubMind’s application on 29 July.
Colliers assessed HubMind against Council’s commercial, capability, compatibility and local-
economy criteria. HubMind received 90 out of 100. Colliers concluded that it represented the best
commercial option in the current market and recommended that Council accept the offer. The
procurement process, assessment and recommendation are provided at Attachment 1.
The primary lease provisions proposed are as follows:
Lease Provision Proposal
Tenancy C
Lessee Name HubMind Pty Ltd
Lease C, being part of Lot 95 on SP137431 as shown on the plan, 253 David
Premises
Low Way, Peregian Beach.
Nett Lettable Area 75 m²
Commencement
1 October 2026
Date
Initial Lease Term 3 years
Options to Extend 1 option of 3 years
Base Rental As per lease details attached, paid in monthly instalments in advance
Market Rent
CPI reviews annually, with a market review on exercise of the option
Reviews:
Recoverable
A fixed annual contribution of $5,496, indexed annually by CPI
Outgoings:
Permitted Use: Professional office
From 1 October 2026 to 31 January 2027: rent of 45 m²-equivalent rate.
Lease Incentive:
Full rent and outgoings apply from 1 February 2027.
Three months’ rent plus outgoings and GST, paid by cash or bank
Bond:
guarantee on execution of the lease
It is recommended that Council agree to enter a commercial lease with Hubmind Pty Ltd in line with
the above provisions.
Link to Corporate Plan
Theme No. 3 - Prosperity
Focus areas include economic development, local business, innovation, arts and culture, waste and
a circular economy.
Theme No. 5 - Excellence
Page 3
GENERAL COMMITTEE MEETING 8 SEPTEMBER 2026 This theme focuses on customer experience, financial sustainability, innovation and technology, levels of service, governance, our employees and volunteers, funding streams and asset management practices. Previous Council Consideration Nil Finance At the asking rate, the lease meets current market expectations. A four-month incentive reduces first-year receipts slightly by $4,935 excluding GST, comprising $4,203 in rent and $732 in outgoings. The lease would provide three years of contracted income, subject to its terms, and restore revenue from a tenancy that is currently vacant. Risk & Opportunities HubMind is an early-stage business, there is therefore some risk, however this is mitigated partly by a three-year commitment, appropriate guarantor and security equal to three months’ rent and outgoings plus GST. The space has been vacant since mid-July. Declining the offer would expose Council to further vacancy, marketing and transaction costs. The proposed incentive is limited to the first four months. HubMind fits the Hub’s purpose and current AI focus. The founders bring relevant technology, AI and business-process experience, and the company has the potential to create high-value local work and improve AI capability among Noosa businesses. Significantly this company has incubated at the Hub and this provides an excellent opportunity for the Hub to enable its growth, doing exactly what the Hubs purpose is. Human Rights Human Rights Compatibility Statement In developing this Report, the subject matter has been considered in accordance with the requirements of the Queensland Human Rights Act 2019. It is considered that the subject matter does not conflict with any human rights and supports a human rights approach to decision making by Council. Council representatives will endeavour to act and make decisions under this report in a manner that is compatible with human rights. This report should be read in conjunction with Council’s Human Rights Policy. Consultation External Consultation - Community & Stakeholder Colliers (Sunshine Coast) Management; Hubmind Pty Ltd.
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GENERAL COMMITTEE MEETING 8 SEPTEMBER 2026
Internal Consultation
Departments consulted:
Office of the CEO, Mayor & Community Services Corporate Services
Councillors
Mayor & Councillors Director Director
Chief Executive Officer Community Connection x Financial Services
Executive Officers Sport & Active Lifestyles Revenue Services
Community Engagement Arts & Culture ICT
x Governance Customer Experience x Procurement
People & Culture
Strategy & Environment Development & Regulation Infrastructure Services
x Director Director Director
Strategy & Sustainability Development Assessment Civil and Asset operations
Economic Development & Infrastructure Planning, Design
Local Laws
Destination Management and Delivery
Environmental Services Environmental Health Waste
x Innovation & Digital Hub Building & Plumbing Building & Facilities
x Commercial Property Property / Permits Disaster Management
Fleet