As the national office market navigates a period of elevated vacancy, the Gold Coast’s commercial office sector is bucking the trend, emerging as a lucrative option for investors.

According to the Property Council of Australia’s most recent Office Market Report, the national vacancy rate in January was nearing 16 per cent – an all-time. This is mainly due to a collective corporate shift towards hybrid work-from-home arrangements, alongside an oversupply of office space in development cycles, with demand for B and C grade tenancies low.

Comparatively, the Gold Coast’s vacancy figures are markedly lower at 7.7 per cent, with A-grade office vacancy sitting at 2.7 per cent.

Kollosche Commercial agent Adam Grbcic says the distinction between the two figures matters because it highlights where demand is strongest – and shows that office space can be lucrative.

“A lot of the vacant space on the Gold Coast is B, C and D grade stock,” Adam says. “So, when you look specifically at A-grade office, there’s very little choice for businesses wanting quality space.”

With about 70 per cent of the city’s vacant offices falling outside the premium category, options are limited for tenants seeking modern buildings, strong amenities, and central locations.

Adam says this has led to increased tenant competition and rising rents.

“Gross rents have already increased by more than 10 per cent over the past 12 months,” he says. “With only 2.7 per cent vacancy in the A-grade market, that competition is pushing rents up further and reducing the incentives landlords need to offer.”

The driver is a simple case of supply and demand. Businesses relocating to or expanding within the Gold Coast want quality environments that reflect their brand and support staff. Yet very little new A-grade stock has been delivered.

Refurbishing older buildings might seem like an easy solution, but it is not always viable.

“A lot of these older properties sit on sites that owners see as future development opportunities,” Adam says. “They don’t want to spend capital upgrading a building that may be knocked down in a few years.”

That leaves the market in a holding pattern, with pressure building in the premium segment.

As a result, Adam believes the office sector could outperform other commercial asset classes over the next 12 to 18 months.

“Industrial will continue to do well, but I think commercial office will be the standout. Until we see more A-grade supply, it’s going to remain a very tight market.”

For a city often discussed in terms of residential shortages, the office story has flown under the radar.

Yet the numbers tell a positive story. While other markets adjust, the Gold Coast’s office sector is proving resilient – and in the premium space, firmly in demand.

Kollosche Commercial is currently marketing prime office space in the growing central suburb of Varsity Lakes.

Positioned in Varsity’s commercial hub at 1201/1 Lakke Orr Drive, it comprises the entire second floor of a modern office building, with 1,432m2* of lettable area across medical and office use with 50 exclusive car parks.

For more information on this property or the Gold Coast’s commercial property market, contact Adam or the Kollosche Commercial team.