Coffs Harbour office market is oversupplied with limited leasing: HTW

Coffs Harbour in New South Wales is approaching the peak of market position for offices, according to valuation firm Herron Todd White's April report, which focuses on the office market.

The office market in Coffs Harbour features an oversupply with limited enquiry for leasing at stable or slightly softer rental levels. 

There are a number of office project developments on hold until pre-sales or leasing is effected. These projects range from smaller strata title office projects to larger developments. The eastern precinct of the CBD remains prime with rental levels of $330 per square metre to $400 per square metre. 

Secondary or dated offices remain difficult to let. The impacts of reduced government spending, limited availability of grants and the retractionist policies are clearly evident in the Coffs Harbour regional office market. 

There is a lack of sales and leasing transactions within the office sphere of the market. Generally yields within Coffs Harbour remain firm based on the prevailing low interest rate climate. 

Leasing activity is restricted with serious owners having to offer lease up incentives or rent-free periods to attract quality tenants. 

As an example, a commercial building leased to a law firm at 134 West High Street in the CBD recently changed hands for an undisclosed sum.

The tenant pays all outgoings and the property earns a net Income of $186,500 pa + GST.

The selling agents were Rhys Parker of Burgess Rawson and Troy Mitchell of LJ Hooker Commercial.