Sunshine Coast’s Office Market Holds Strong
The Sunshine Coast is riding a wave of interest in office assets on the back of the region’s IT infrastructure and a movement of professional services business out of Brisbane.
LJ Hooker Commercial Sunshine Coast recently sold 234sqm of A-Grade office atop a neighbourhood shopping centre for $900,000 and has since leased the property to health services provider VBA Health which has moved its legal division from Brisbane to Kuluin, neighbouring Maroochydore. The tenant has taken a five-year lease with a five-year option, delivering the owner an initial 6.3% yield.
In 2020, the Sunshine Coast became home to an 18 Tbps (Tera-Bits Per Second) submarine data cable providing the fastest east coast connection from Australia to Asia. It delivers data hungry business with quicker downloads, reduced risks and lower costs.
Two years ago, ASX-listed NEXTDC purchased the Sunshine Coast International Broadband Cable Landing Station from Sunshine Coast Council to create the SC1 Sunshine Coast data centre. Located in the heart of Maroochydore, the data centre provides a direct link to high-speed data via the Sunshine Coast’s international submarine cable.
The infrastructure is resonating with businesses with the Property Council of Australia estimating the region’s office vacancy rate was only four percent at the start of the year.
LJ Hooker Sunshine Coast Commercial’s Josh Gray managed the Kuluin office deal.
“The office market on the Sunshine Coast has been performing quite well compared to many other regions,” he said. “Investors are very interested in office assets because you can secure 6-6.5% returns with the security of tenant demand.”
LJ Hooker Commercial Sunshine Coast Director Julie Stewart said there was a surge in professionals moving out of Brisbane to pursue a blend of business and lifestyle on the Coast.
“The strata office market is particularly buoyant,” she said. “There are solicitors, accountants and other professionals who are opening a second office on the Sunshine Coast to cater for its growth or are leaving their corporate careers and starting their own businesses here.”
Mrs Stewart said supply remained very tight amongst office and industrial assets.
“Delivery of new office and industrial would be welcomed to meet demand,” she said.
"The Sunshine Coast will benefit from the 2032 Olympic Games with more hotel developments, but there’ll be an increased demand for the spectrum of non-residential development: warehousing, office, shopping and more.”
Reach out to the team at LJ Hooker Commercial Sunshine Coast to find out more about the Sunshine Coast commercial property market and read our Commercial Magazine for the latest commercial real estate opportunities and insights.