MCU14/0106 Appendix K - Commercial Needs Assessment

4             Commercial Office Supply Analysis
The Sunshine Coast commercial office market is dominated by the centres of Maroochydore and Kawana
and supported by a range of smaller local centres. This section provides an overview of current and
proposed commercial office space supply situated within the Noosa Civic catchment area and broader
Sunshine Coast local government area.


4.1           SUNSHINE COAST OFFICE SPACE SUPPLY
The main office market on the Sunshine Coast has traditionally been centred on the Maroochydore
centre, with the relatively recent development of Kawana forming the second major office market on the
Coast. Scattered office offerings also exist across the Noosa, Caloundra and Nambour centres, with
office developments generally limited in supply and size compared to the major centres. There is also a
range of small office floor space provision across a number of smaller Sunshine Coast centres. The scale
of office floor space across these centres on the Sunshine Coast is outlined below.

4.1.1         MAROOCHYDORE AND KAWANA OFFICE SUPPLY
The Property Council of Australia undertakes a regular estimate of office floor space in South East
Queensland which covers the Brisbane CBD, Brisbane Inner areas, Chermside, Mt Gravatt, the Trade
Coast/Brisbane Airport, the Gold Coast and the Sunshine Coast. The office market report is based on
office surveys, discussions with real estate agents, developers and building construction records. The
office floor space estimates for the Sunshine Coast only include the centres of Maroochydore and
Kawana.

As at July 2014 the PCA estimated that the centres of Maroochydore and Kawana contained 153,169
sq.m of commercial office floor space. Of this floor space, the Kawana commercial centre accounted for
around 49,000 sq.m (32%), and the Maroochydore centre around 105,000 sq.m (68%).


Current Office Space Supply
MAJOR SUNSHINE COAST OFFICE MARKET                                                                                                        TABLE 4.1

                                     GFA
Develoment Name                     (Sq.m)         Suburb                   Key Insights

                                                                            Secondary Office market on the Coast. Relatively new
Kawana Commercial
                                     48,667        Kawana                   compared to the Maroochydore market. Still experiencing
Centre
                                                                            teething problems due to new precinct perceptions


                                                                            Strongest performing and most established office market
                                                                            on the Coast. Displays significantly less vacancy than
                                                                            Kawana, with stronger rents and greater NLA. Appears
Maroochydore Centre                104,502         Maroochydore
                                                                            more desirable by tenants due to its central location within
                                                                            the Sunshine Coast, with better supporting infrastructure
                                                                            and a strong business base.

So urce: Co rdells Co nnect ; Sunshine Co ast Co uncil ; P ro pery Co uncil o f A ustralia ; Urbis


The overall stock level for the Maroochydore and Kawana centres has decreased over the last year by
around 700 sq.m and currently has a combined vacancy rate of 12.3%, equivalent to 18,812 sq.m of
office floor space. A review of the historic supply and demand parameters as outlined in the PCA Office
Market Report are outlined in the following sections.

SUNSHINE COAST COMMERCIAL – SUPPLY AND VACANCY
Although the vacancy rate has seen a slight fall since the same period last year (recording 14.1%), the
current rate is substantially up on July 2008 vacancy rates of 6.8% (refer Chart 4.1).




16     COMMERCIAL OFFICE SUPPLY ANALYSIS
                                                                                                                                                       URBIS
                                                                                                     REP_251114_NOOSA CIVIC COMMERCIAL NEEDS ASSESSMENT FINAL