A Gold Cost mixed-use development is set to provide the city with a year’s supply of office space.
Construction on The Landmark, a $2 billion development at Mermaid Beach, is due to start later this year and will create up to 11,000sq m of A-grade office space.
It will be the largest injection of new office space into the market since The Oracle was built 14 years ago.
According to recent Colliers analysis, the net absorption of office space on the Gold Coast in the six months to January was 4490sq m, with A-grade properties recording the highest level of demand.
According to Colliers Gold Coast Director Steven King, based on that absorption rate, The Landmark will deliver more than a year of supply to the Gold Coast market, which saw vacancy rates fall to 6.4 per cent in January.
A-grade space went even lower to 3.3 per cent.
“The landmark represents one of the biggest injections of office space in the Gold Coast market for more than a decade,” Mr King said.
“It comes amid an acute shortage of new office developments across the city due to higher construction costs, labour shortages and increased borrowing costs.
“In a single hit, The Landmark will open up more opportunities for businesses to secure A-grade space close to key transport nodes in the central Gold Coast precinct.”
Developed by Aniko Group, The Landmark will sit on a 1.1342ha site bound by Seaview Ave and the Gold Coast Highway, at the entrance to the iconic Pacific Fair Shopping Centre.
On the Gold Coast, office space totals 460,510, with 87,203sq m of that made up of A-grade office stock.
The Landmark’s 11,000sq m is set to boost the A-grade stock by 14 per cent.
“Tenants have been crying out for A-grade space amid the continued migration of business owners to the Gold Coast and the expansion needs of existing businesses,” Mr King said.
“With the rate of net absorption of space at present, this project will add more than a year’s supply of much-needed A-grade space and alleviate some of the shortages the market has been experiencing.”
The Gold Coast office market has performed robustly in the wake of higher interest rates, with strong population and business growth contributing to the buoyancy.
CBRE predicts the Gold Coast office vacancy rates will remain one of the lowest in the country.
CBRE Investor Leasing Senior Director, Tania Moore, said the vacancy rate could fall to between 2 and 3 per cent by next year.
“We desperately need more A-grade office space and have been waiting for this supply since Oracle in Broadbeach was introduced to the region 14 years ago,” she said.
CBRE’s Gold Coast Office Market Report revealed that the city’s vacancy rate remained one of the tightest in Australia, at just 6.4 per cent.
The Gold Coast’s supply pipeline will be limited over the next few years due to high interest rates, construction costs, delays and labour shortages restricting construction, said the report.
“The central Gold Coast is desperate for major A-grade office space, as the region continues to grow and evolve into a corporate nucleus with tenant demand focussed on a high quality building quality and amenities,” Ms Moore said.
“Aniko Group’s vision will also incorporate a number of incredible value adds to the office precinct with close proximity to the new international restaiurants and retail precinct that will be a feature of The Landmark.”
The Landmark, a four-tower mixed-use project, is primed to unlock new residential and commercial opportunities with a design that will create an iconic southern gateway to Broadbeach.
Aniko Group, which plans to undertake the project in stages, has laid plans for three residential towers of 25, 30, and 40 storeys, in addition to a 53-level tower featuring a mix of hotel suites and private hotel-branded residences.
The project’s activated space will be dominated by a sprawling 1ha recreation podium in addition to a commercial precinct comprising A-grade offices, medical services and ground-floor retail and dining precinct.
Aniko Group Managing Director George Mastrocostas said the prime location of The Landmark would provide office occupants with an enviable office space, but more than this, it was idealistically positioned with the best of world class amenities including international retail and dining precincts surrounding the project.
“Our vision for The Landmark is to create a self-sustained urban village in Mermaid Beach that is a natural extension of the commercial heart of the city,” he said.
“The office component is integral to enhancing the activated space where tenants can enjoy all that this world-class precinct will have to offer.
“We’re proud to be at the forefront of enhancing the Gold Coast’s commercial landscape with The Landmark.
“This development not only addresses the urgent demand for premium office space but also sets a new standard for urban living and working in the region”.
