Office space on the Sunshine Coast continues to be in short supply, according to latest figures.
The vacancy rate for the Sunshine Coast market dropped from 5 per cent in January 2024 to 4.3 per cent in 2025 and is the second most constrained office market in the country, according to the Property Council Australia’s Office Market Report.
Property Council Queensland executive director Jess Caire said the vacancy rate on the Coast was at a critical level if the region wanted to harness the economic momentum South-East Queensland would experience over the next decade.
“There is significant demand from businesses looking to invest in office space in South-East Queensland and the Sunshine Coast leads the pack with the lowest vacancy rate in the region and the second lowest vacancy rate nationally,” she said.
“A vacancy rate below 5 per cent means that tenants will struggle to find space that caters to their needs.
“The Sunshine Coast is going through a growth period and ensuring the region has sufficient office supply is an essential part of responding to this growth.
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“While there is some space set to come online on the Sunshine Coast in 2025, this will only provide short-term relief with no new space in the pipeline after that.
“Developing an office building from planning to finance to construction is not a quick process and it is only getting more challenging.
“As such it is critical to start planning now so the region is prepared to sustainably respond to future demand.
“This could include running a targeted investment attraction campaign so the institutional investors needed to build these buildings are aware of the opportunity in the region.
“Furthermore, there is an opportunity for Queensland as a whole to review our taxation settings, which disincentivise the institutional capital required to make office developments stack up.
“While a lack of office supply ostensibly seems lower down the priority list, having places for business to grow and people to work is absolutely imperative.”