MCU14/0106 & OPW15/0001 Compiled Information Request Response

                                                                                                      Noosa Civic Expansion
                        28 Eenie Creek Road, Noosaville and parts of the road reserves of Hofmann Drive and Walter Hay Drive



            If a sensitivity analysis was to be undertaken, Urbis suggests that the benefits outlined in the
            Retail Needs Assessment could be reduced by half for the downside if $15.00 per hour was the
            adopted value. Equally, however, it is appropriate to recognise that a higher value is actually
            more likely, and consequently the upside could be 50% higher than that indicated in the Retail
            Needs Assessment.

3.19        Office Accommodation
            “The Commercial Needs Assessment estimates of floor space generally accord with a variety of
            data sources relating to the provision of ‘traditional’ commercial office space within the region.
            However, commercial office activities frequently occur outside of traditional commercial office
            environments and can influence on commercial office outcomes within a given region.

            Information Required:
            33   Provide an indication of the extent of white collar employment likely to be
                 accommodated in alternative or non-traditional arrangements, such as home office
                 type arrangements, or co-located with other operations and the potential presence of
                 office uses within the Noosaville industrial area.”
            RESPONSE
            Urbis advises as follows:
            (a) a typical office tenancy in Noosa is approximately 60m2 - 80m2;
            (b) current rents for A Grade office space in Noosa are approximately $300 - $350 per square
                metre, representing a 25% - 30% reduction on the original leases struck;
            (c) given the discount, A-Grade office development is not feasible in Noosa as development
                costs exceed the property value;
            (d) B Grade office rents are approximately $250 - $280 per square metre;
            (e) lease terms have been reducing to periods of less than 3 years, which generally reflects the
                smaller scale and higher risk profiles of Noosa businesses.
            Urbis concludes that it is more economically viable for smaller white collar business that do not
            require a traditional office front to work from home or relocate to pseudo-office space in more
            affordable “out-of-centre” areas, such as the Noosa Industrial Area.
            Refer to Appendix C – Commercial Needs Response Report for further information.

3.20        Office Demand
            “The Commercial Needs Assessment estimates ‘White Collar’ employment represents
            approximately 17% of total employment within the Sunshine Coast and Noosa region, while
            ‘White Collar-Core’ employment is estimated at 13.7% of total employment within the region. Peer
            review calculations suggest a higher incidence of white collar employment (~20%).

            Information Required:
            34   Provide a detailed analysis, including source data, of the calculation of the incidence
                 of ‘White Collar’ and ‘White Collar-Core’ employment within the Sunshine Coast and
                 Noosa region.”
            RESPONSE
            Please refer to Appendix C – Commercial Needs Response Report in response to Item 34.
            A summary table of the type of employment within the Statistical Areas that made up the
            Sunshine Coast Regional Council in 2011, extracted from the Commercial Needs Response
            Report prepared by Urbis, is set out below:



June 2015                                           Cardno HRP                                                           21