Remote workers’ return drives demand for office space

Varsity Lakes office space

WORKING from home has become a relic of the pandemic for many employees amid soaring demand for premium office space.

Three years on from the start of lockdowns, office vacancy on the Gold Coast has dropped to its lowest level in 14 years, Colliers Gold Coast Market report shows.

Data sourced from the Property Council of Australia shows office vacancies fell from 8.1 per cent to 6 per cent in the six months to the end of January this year, making the Gold Coast a standout performer among non-CBD office markets in Australia.

Bede Blatchford of Colliers

Colliers International Gold Coast Director Bede Blatchford said the figure reflected a reversal of the drastic increase in remote working and decline in demand for office spaces, which was one significant effect of the Covid-19 pandemic.

”As a result of the pandemic, we certainly saw an increase in remote working. however, fast

forward to three years since the start of lockdowns, and we are once again witnessing strong

demand for office vacancy,” Mr Blatchford said.

The report shows just 27,467 sqm of office space is available from total stock of 454,149 sqm.

“The market is expected to remain competitive in 2023, with vacancies expected to continue

to decline due to strong market fundamentals, a constrained supply pipeline and people

returning to the workplace,” Mr Blatchford said.

TripaDeal, founded by Byron Bay businessmen Richard Johnston (pictured) and Norm Black, has leased office space on the Gold Coast.

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Brisbane-based investment company Exceed Capital has tapped into demand, reaching near-full occupancy at 154 Varsity Parade in Varsity Lakes following refurbishments worth $2.5m.

The three-level building had a vacancy rate of about 45 per cent when Exceed Capital

bought it in April 2021.

That was reduced to 3 per cent within 18 months, with only a single 150sqm ground-floor vacancy remaining at the property.

To meet demand, Exceed Capital took a large single-floor vacancy of 1,100 sqm and split it

into four tenancies, with new leases recently secured for all of them.

Pearl Bridal is another tenant in the Varsity Lakes building. Picture: Jerad Williams

“The strategy has revealed the depth of the Gold Coast office market for sub-400sqm

occupiers,” Mr Blatchford said.

“Gold Coast is predominately made up of small to medium occupiers as opposed to the level

of corporates in CBD markets.

“This sector accounts for most Gold Coast office demand, which is currently driving a tightening of vacancies across the city’s office precincts.”

CBRE marketing agent Nick Selbie. Picture: Jerad Williams

Colliers International, CBRE and Harcourts Coastal Commercial are co-ordinating the leasing campaign for the Varsity Lakes property.

“The strategy implemented by the owner shows that landlords who are willing to invest in

their buildings to meet demand are achieving leasing success in the Gold Coast’s buoyant

commercial leasing market,” said CBRE’s Nick Selbie.

Tenants who have recently signed leases of between 5 and 10 years include: Tripadeal, Varsity Lakes Family Practice, Cobra Digital, Zonos, and Pearl Bridal.