MCU14/0106 Appendix K - Commercial Needs Assessment

It is important to note, however, that the reporting history of these figures has been quite short
commencing in 2008, with 2008 being the beginning of economic instability caused by the global financial
crisis (GFC). Over the period July 2008 to July 2011, around 26,800 sq.m of commercial office space
entered the market whilst demand for space slowed. Vacancy rates topped out at 16.3% in January 2010
as significant supply entered the market at a time of weak demand following the GFC.

The current stock proportioning across the Kawana and Maroochydore commercial markets comprise A
grade stock of 46%, B grade stock of 36%, C grade stock of 17% and D grade stock of 1%.


Sunshine Coast Commercial Supply (Maroochydore and Kawana)
SUPPLY AND VACANCY JULY 2014                                                                                                        CHART 4.1

                       180,000                                                                                                           18%
                                                   Total Stock (sq.m)                         Total Vacancy Factor (%)
                       160,000                                                                                                           16%

                       140,000                                                                                                           14%
  Total Stock (sq.m)




                       120,000                                                                                                           12%

                       100,000                                                                                                           10%

                        80,000                                                                                                           8%

                        60,000                                                                                                           6%

                        40,000                                                                                                           4%

                        20,000                                                                                                           2%

                            0                                                                                                            0%
                                 2008           2009                2010               2011       2012         2013          2014
So urce: P ro perty Co uncil o f A ustralia Office M arket Repo rt July 2014 ; Urbis


SUNSHINE COAST COMMERCIAL OFFICE SUPPLY – BY GRADE
Over the seven year Sunshine Coast office market survey period, the greatest growth has occurred in A
and B grade stock. A grade stock has increased at a relatively strong rate of 8% per annum or an
average of 4,372 sq.m each year. B grade stock has increased at a similarly strong rate of 8.3% per
annum or an average of 3,508 sq.m each year. Limited or negative growth has occurred in the C and D
grade office stock over this period reflecting a maturing and increase in overall quality of office floor space
on the Sunshine Coast (refer Chart 4.2).




URBIS
REP_251114_NOOSA CIVIC COMMERCIAL NEEDS
ASSESSMENT FINAL                                                                                            COMMERCIAL OFFICE SUPPLY ANALYSIS   17