One key regional area with an exhilarating commercial market

It’s a rare feat for a regional market!

Having such a robust and booming commercial market isn’t common by any stretch.

Yet on the Sunshine Coast, that’s exactly what is happening.

In our recent ‘Sunshine Coast and Noosa Market Overview Report’, we explore what’s happening and why in much greater detail.

But in today’s newsletter, I want to give you a glimpse into some of that.

Office Sector

The Sunshine Coast office sector is outperforming expectations.

One of the main driving factors here is the vacancy rate.

In the 8 months to February 2022, the vacancy rate almost halved, going from 13.2 percent to just 7 percent.

Rapid uptake of previously available stock and a slow pipeline of construction helped. But regardless, the appetite for office property in this market has heated up significantly.

If new stock continues to be slow to market, then you can expect this vacancy rate to tighten even further throughout 2022.

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Retail Sector

Retail forms a big part of the Sunshine Coast region’s DNA.

Tourism and locals alike, make good use of the retail options at their disposal.

Because of the demographics of the region, demand for retail space is generally high.

In fact, vacancy rates are so tight in key retail strips that there can be as few as 2 or 3 available properties out of a strip of 100+ shops.

However, despite the low vacancy rates, rents remain similar to that of 2019.

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Industrial Sector

The industrial market on the Sunshine Coast is the star performer.

With tight vacancy rates, low stock levels, limited land for development and strong demand for space, the industrial sector looks poised for continued growth into the near future.

Net face rents have jumped from a range of $110-120 in 2020 to $140-180 by the end of 2021.

The supply of industrial zoned land is all but dried up, with no new industrial zoning designations currently in the works through council. This is a recipe for undersupply and a driver for value growth.

What’s interesting about the market is that there is intense demand from both investors and owner-occupiers. Demand is actually at a 15-year high! This means greater competition for the already-scarce available property.

Businesses from growing industries in the region are also relocating or upgrading.

Investors are seeing the right signs and indicators signalling continued growth, so are taking up opportunities.

All in all, things have been heating up for some time in the industrial sector, and we might just be about to reach boiling point.

If you’d like to know a bit more about the Sunshine Coast markets, please find the FREE report I mentioned earlier attached herein. It can also be downloaded from here.

P.S.?Here are a couple of resources that may help you make great purchasing decisions:

1. FREE Market Overview Report: As mentioned above, if you'd like to know more about everything from economic factors, to market overviews (residential, commercial, industrial etc) in the Sunshine Coast region, download the report today.?Click here
2. Are the East Coast property markets dead?: I recently posted a LinkedIn Newsletter about what's happening in the east coast property markets. Have a read.?Click here