While office vacancy rates soar in major Australian cities, the Gold Coast is defying national trends – and investors are paying attention.

Across Sydney, Melbourne and Brisbane, office vacancies have climbed to between 8 and 20 per cent as companies reassess their space needs in a post-pandemic world. But on the Gold Coast, the vacancy rate for A-grade office space sits at a remarkably low 2 per cent – a figure that speaks volumes about the strength and stability of this decentralised market.

“This is one of the tightest office markets in the country,” says Adam Grbcic, Kollosche Commercial Lead Agent. “Unlike the capitals, we haven’t had the same pipeline of new office developments, which has created a genuine shortage of supply.”

With very little new stock delivered in recent years, competition for space is fierce. The upcoming Landmark development by Aniko Group, which will add 11,000 sqm of office space in Mermaid Beach, is the first major addition in over a decade and a clear response to the current supply-demand imbalance.

The undersupply is only part of the story. “The other key factor is that the Gold Coast didn’t embrace the work-from-home model in the same way other cities did,” says Adam. “People returned to the office, and we’ve seen strong demand for space in lifestyle precincts like Miami, Mermaid Beach and further south.”

Rather than concentrating in a single CBD, the Gold Coast’s office market has evolved into a spread-out, lifestyle-driven network of business hubs. This decentralised structure reflects the region’s appeal – easy commuting, coastal amenity, and proximity to where people actually live.

Even as some central areas report slightly higher vacancy – Colliers recently noted a minor uptick from 6.2 to 6.5 per cent – key precincts like Robina, Broadbeach and Bundall are still recording sub-5 per cent vacancy. Developers have been cautious, with high construction costs and labour shortages slowing future supply.

For landlords, these conditions translate to stronger tenant retention, reduced incentives, and shorter re-leasing times. “With vacancy so low, tenants simply don’t have many options,” Adam explains. “If someone vacates, the let-up time is short, and you’re not needing to offer major incentives to secure a lease.”

Investor confidence is also being reinforced by local government. The Gold Coast City Council recently acquired the Gold Coast Corporate Centre in Bundall for over $117 million, citing the strategic value of holding a high-performing office asset with stable, long-term tenants.

While office investments were once seen as volatile on the Gold Coast, conditions have shifted. “Office is now one of the most resilient asset classes in our commercial landscape,” says Adam. “If you’re holding quality stock in a well-located precinct, you’re in a strong position.”

With limited new supply expected before 2027, the tight fundamentals look set to persist – reinforcing the Gold Coast’s appeal for both businesses and commercial investors in the years ahead.

To explore current opportunities or receive tailored commercial advice, contact the Kollosche Commercial team today.