MCU14/0106 & OPW15/0001 Compiled Information Request Response

2:2 VACANCY RATES

Information request:

‘The Retail Needs Assessment suggests reasonable overall vacancy rates for the centres
network within the identified trade areas but does not adequately assess the proposed
introduction of a large quantum of new floorspace’.

Response:

The introduction of new floorspace, as proposed with the Noosa Civic Expansion, is justifiable on the
basis of market growth, under-provision of floorspace in the local area, escape spending, market gaps
and low impacts. It is quite clear that local needs are not being met.

Moreover, the Noosa Civic expansion will account for only 18% of future retail floorspace deficiency over
the 2014-21 period (see page 103 of DA report). In this environment any existing vacant space that is
suited to the needs of retailers and service providers could be expected to be absorbed.

In our view the DA report appropriately considers the need, demand and impact issues relating to the
proposed development, and, in particular, thoroughly assesses the impact of the proposed development
on the network of centres throughout Noosa, and indeed the central and northern parts of the Sunshine
Coast.

2.3 CENTRES ANALYSIS

Information request:

‘The Retail Needs Assessment does not consider the extent to which the expansion of the
Noosa Civic might impact on other MRACs and the Maroochydore PRAC. Vacancies can
provide an indication of centre performance and need for any additional floorspace’.

Response:

The need for additional retail floorspace in the Maroochydore PRAC and Nambour MRAC will be
determined based on the needs of their catchment populations, both of which can be expected to be
distributed over a large geographic area.

Similarly, any well located vacant space in these centres would be expected to be filled based on the
market fundamentals and characteristics of each trade area and centre, and would not be influenced to
any significant degree by actions in Noosa which is some 25-30 km to the north.

In our view, as noted above, vacancies provide, not only an indication of overall centre performance, but
also an indication of where centres may have weaknesses in their layout, composition, carparking,
adjacencies, connectivity and the like. As a general rule, ultimately most vacancies tend to be in poor
locations as existing businesses trade up into superior space.

URBIS .
NOOSA RESPONSE REPORT - RETAIL ECONOMICS JUNE 2015 V2 VACANCY ANALYSIS: 9