As we move into the second quarter of 2024, it’s clear that many of the predictions made at the end of last year are coming to fruition. Here’s how the Gold Coast’s key commercial sectors are shaping up so far.

Office

The Gold Coast is witnessing a tightening of office space vacancies, now below 6.3%, according to data from Colliers. That rate is realistically even lower, as Kollosche Commercial sales specialist Adam Grbcic notes, once you eliminate C and D-grade buildings as well as those with demolition clauses.

Furthermore, tempting workers back to the office post-pandemic has been far easier on the Gold Coast, unlike other major cities. This, coupled with the increased population and business growth, means there is now a shortage of quality office space in the key demand regions. This puts the Gold Coast office sector in a class of its own.

Retail

The retail sector in Queensland has shown strong performance with a 2.5% year-on-year increase in trade this February, outpacing the national growth rate of 1.6%. Queensland retail rental growth continued to increase across all retail asset classes in the final quarter of 2023.

Adam notes that continued tourism and an increase in international flights, coupled with steady population growth, supports a robust retail market on the Gold Coast. CBRE has predicted limited new supply of about 166,000 square metres is expected to present this year, which is roughly in line with the five-year average.

Industrial

The industrial and logistics sector remains the standout performer, with Brisbane recording almost 140,000 square meters leased in Q1 of 2024. Cushman & Wakefield anticipate vacancy rates will stay well below historical levels, which is likely to drive rental prices up by 7 to 10% this year. However, a notable gap exists in the central Gold Coast for large format industrial spaces, says Adam, as most new buildings are under 200 square meters. It’s also worth noting the class remains tightly held on the back of its strong rental growth and vacancy rates.

As we progress through 2024, these insights will be valuable for those looking to invest or optimise your existing assets. Reach out to Kollosche Commercial if we can assist you in sales, leasing or property management.