Coast Office Demand Up
The Courier Mail, 13/10/2006
The Gold Coast office market has taken 15 years to claw its way up from a massive vacancy rate to a position where it may soon face an undersupply of space.
BIS Shrapnel Chief Economist, Frank Gelber, who visited the Gold Coast this week to help launch the redevelopment of the Corporate Centre at Bundall, said it was an office market which could not really be compared with that of Brisbane.
"The Gold Coast market is a market in itself, when there is no demand there is nothing they can do", he said.
Fortunately, at the moment the demand was strong for office space, although Dr Gelber said supply was a concern.
In the 90's the vacancy rate was about 30 per cent. Now it was 6.5 per cent.
Dr Gelber predicts it will be on its way to 3 per cent in the next year.
"It has been a very long claw back," he said.
"It is not something that happened over night. It has really taken about 15 years to do it."
Dr Gelber said there had been a strengthening of demand for office space and substantial building in the past few years, but there would still be a shortage at some stage, although no where near as extreme as the current level of the Brisbane office market.
Developers on a while were still fairly cautious, although Dr Gelber said a number were now jumping in.
"(With) the Corporate Centre they are really biting the bullet and doing a spec building," he said.
Cromwell announced plans last month for a $40million development of the Corporate Centre in Bundall.
The first stage of the redevelopment will be a $45million 8000sq m bulding.
Eventually up to fice buildings will be developed in the master-planned project by the Corporate Centre Development Alliance which comprises Cromwell, PacLib Group and property identity Dan McVay.
Michelle Herle
BIS Shrapnel Chief Economist, Frank Gelber, who visited the Gold Coast this week to help launch the redevelopment of the Corporate Centre at Bundall, said it was an office market which could not really be compared with that of Brisbane.
"The Gold Coast market is a market in itself, when there is no demand there is nothing they can do", he said.
Fortunately, at the moment the demand was strong for office space, although Dr Gelber said supply was a concern.
In the 90's the vacancy rate was about 30 per cent. Now it was 6.5 per cent.
Dr Gelber predicts it will be on its way to 3 per cent in the next year.
"It has been a very long claw back," he said.
"It is not something that happened over night. It has really taken about 15 years to do it."
Dr Gelber said there had been a strengthening of demand for office space and substantial building in the past few years, but there would still be a shortage at some stage, although no where near as extreme as the current level of the Brisbane office market.
Developers on a while were still fairly cautious, although Dr Gelber said a number were now jumping in.
"(With) the Corporate Centre they are really biting the bullet and doing a spec building," he said.
Cromwell announced plans last month for a $40million development of the Corporate Centre in Bundall.
The first stage of the redevelopment will be a $45million 8000sq m bulding.
Eventually up to fice buildings will be developed in the master-planned project by the Corporate Centre Development Alliance which comprises Cromwell, PacLib Group and property identity Dan McVay.
Michelle Herle
Corporate Centre Bundall
Five building, $500M+ master planned office development on the Gold Coast
Read more
