Kon Tiki sets the mix-use office trend for Sunshine Coast: HTW

Kon Tiki sets the mix-use office trend for Sunshine Coast: HTW
Kon Tiki sets the mix-use office trend for Sunshine Coast: HTW

The office market on the Sunshine Coast is heavily oversupplied due to a number of projects completed in 2017, according to the latest report by the valuation firm Herron Todd White (HTW).

They suggested it has led to a reduction in rental levels across the Sunshine Coast market over the past nine months for new tenants.

This oversupply was predominately in the Maroochydore area.

"We have generally seen all but the most prime tenancy areas in quality buildings with good views have reductions in effective rentals of circa 10% to 30%," HTW said.

The valuers suggested effective rents within A grade style premises on the Sunshine Coast were from circa $400/m² gross pa to circa $480/m² gross pa, "though have now fallen and the market remains volatile."

It had begun to impact on the traditional owner-occupier strata titled market, which generally has a value range from $3,500/sqm to $5,000/sqm depending on the location, size of the strata and overall quality.

HTW noted office sales over the past 12 months had begun to slow in this market as business owners have begun to look at the cost of owning or leasing and the quality of space that is available.

The largest of these developments, Kon Tiki in Maroochydore, is a mixed-use development with a range of retail uses to the ground level and medical uses within one of the two towers.

Kon Tiki is a mixed-use style development, the first of its type on the Sunshine Coast (above).

"While take-up of the office space has been slow, the majority of the lower level retail space is now taken up with the medical space also mostly taken up."

HTW forecast the new CBD development within Maroochydore will see further construction of large office complexes, but more in line with the mixed-use nature of developed CBD rather than the business park style developments that have been developed previously.

 

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Sunshine Coast Office Market

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