MCU14/0106 Appendix K - Commercial Needs Assessment

Executive Summary
This commercial office floor space need and demand assessment report has been prepared to determine
the demand for commercial office floorspace over the period to 2031. It will accompany a Development
Application for the expansion of Noosa Civic.

OFFICE FLOOR SPACE SUPPLY
The estimated total commercial office floor space (including vacancies) across the Sunshine Coast totals
an estimated 225,760 sq.m GFA. This includes approximately 153,169 sq.m as identified by the Property
Council of Australia in the major locations of Maroochydore and Kawana; 25,850 sq.m within the Noosa
Civic catchment; and 50,000 sq.m in the remaining centres of the Sunshine Coast including Nambour and
Caloundra (as outlined in the table below).


Sunshine Coast Current Office Supply
FLOORSPACE – JULY 2014, SQ.M GFA
                                                                                            Floorspace 1                                    Est. Market
                                                                 A Grade        B Grade        C Grade         D Grade             Total     Share (%)

Maroochydore and Kawana (Office)                                     70,731      55,295         25,643           1,500            153,169      66.9%
   Proportion of Total Core Market                                   46.2%       36.1%           16.7%           1.0%
Noosa Civic Catchment Area (Est. sq.m)                                                                                            25,852       11.3%
Nambour and others (Est. sq.m)                                                                                                    50,000       21.8%
Total Sunshine Coast Office Supply                                                                                                229,021      100%
1. Includes to tal co mmercial o ffice sto ck, including vacancies
So urce: QIC ; P ro perty Co uncil o f A ustralia Office M arket Repo rt July 2014 ; Co rdells Co nnect ; Urbis Land Use Survey


OFFICE FLOOR SPACE DEMAND
The major demand drivers for office based white collar floor space have been identified as population
growth and white collar employment growth. Therefore, it is important that these two drivers play primary
roles in floor space forecasts. With this in mind two floor space demand approaches have been
developed to estimate the demand for commercial office floor space at the Noosa Civic. The first method
focuses on the growth in office based white collar workers in the wider Sunshine Coast region and the
Noosa Civic catchment area. The second approach focuses on the forecast population growth for the
Sunshine Coast region and Noosa Civic catchment area.

Noosa Civic currently accounts for around 15% of the supply of office floor space in the catchment. Going
forward the Shire Business Centre (including Noosa Civic) is intended to be a significant location for office
floor space in the Shire. In respect of this we anticipate that Noosa Civic will attract a higher share of the
office floor space demand in the catchment that it currently captures. Subsequently we have applied a
range of market shares from 27%-50% that Noosa Civic may achieve of future office floor space
development in the catchment area. Based on this approach it is estimated that demand for office floor
space at Noosa Civic will range between 4,300 sq.m and 8,000 sq.m between 2013 and 2031.

Applying the commercial office floor space ratio to the forecast population growth for the Noosa Civic
catchment area (method 2) will result in an estimated demand for office floor space for the catchment of
5,050 sq.m over the period from 2013 to 2031. When the Noosa Civic market shares are applied to this
office floor space demand estimate, this generates an office floor space demand range for Noosa Civic
over the period from 2013 to 2031 of 1,360 sq.m to 2,530 sq.m of core commercial office space.




URBIS
REP_251114_NOOSA CIVIC COMMERCIAL NEEDS ASSESSMENT FINAL                                                                                    EXECUTIVE SUMMARY   iii