The Gold Coast commercial property sector delivered a steady performance in FY24-25, maintaining momentum despite a series of challenges including economic volatility, interest rate rises, severe weather events, election uncertainty and global instability. Confidence began to return across the office, industrial and retail markets, supported by strong fundamentals, limited new supply and renewed investor interest.

Office: Vacancy Tightened, Rents Rose

The office sector emerged as a standout performer. Vacancy rates for A-grade space across the Gold Coast remained under 5 percent, with prime precincts like Bundall, Varsity Lakes, Robina and Broadbeach experiencing even tighter conditions. This scarcity drove rental growth and reduced incentives as tenants competed for limited quality space.

“It was an exceptionally tight office market,” says Adam. “That pushed rents higher, shortened vacancy periods and reduced incentives like rent-free periods or fit-outs.”

A notable transaction was the Gold Coast City Council’s acquisition of the 17-storey Gold Coast Corporate Centre in Bundall for over $117,000,000. With anchor tenants including KPMG and Commonwealth Bank, the asset delivered around $6,000,000 in annual income and signalled long-term confidence in the sector.

Looking ahead, the completion of The Landmark development in Mermaid Beach is anticipated to add approximately 11,000 square metres of A-grade office space by late 2025. Construction is underway on the V&A in Broadbeach – a significant mixed-use project comprising two residential towers, premium office spaces, and a retail arcade – is slated for a 2028 finish. Other major developments such as Stage 3 of Acuity in Robina remain contingent on pre-commitment before construction can commence, which is likely to delay the delivery of additional supply.

Industrial: Demand Outpaced Supply

The industrial sector continued its upward trajectory, fuelled by strong tenant demand and limited land availability. Leases for sub-5,000 square metre spaces saw rents climb from approximately $120 to $130 up to $170 to $180 per square metre, with prime yields hovering between 5.5 and 6.5 percent. Submarkets like Yatala, Molendinar and Arundel remained particularly undersupplied.

“Buyers were hunting for opportunities where they could enhance the yield through upgrades or repositioning,” says Adam. “There was a lot of competition for income-producing assets that offered potential for value uplift.”

The scarcity of new supply, combined with ongoing infrastructure projects such as the Coomera Connector, is expected to sustain momentum into FY25-26.

Retail and Mixed-Use: Evolving Landscapes

Retail assets demonstrated resilience, particularly in tourist-centric areas. Neighbourhood retail and convenience centres benefited from population growth and a revival in tourism. There was also a noticeable shift towards mixed-use developments that integrated residential, retail and health or lifestyle services to meet evolving consumer preferences.

Infrastructure projects such as Light Rail Stage 3 influenced commercial activity along key corridors. While ongoing construction caused temporary disruption for some businesses, the promise of improved connectivity drove long-term interest in well-located retail and mixed-use assets. The $1.5 billion project has faced significant cost blowouts and timeline delays, with operations now scheduled to begin in mid-2026. These factors added pressure for businesses during construction, although demand is expected to strengthen once works are complete.

“There was short-term pain for shopfronts along the highway, but we anticipate a real uplift in activity once Stage 3 is complete,” says Adam.

Kollosche Commercial’s Performance

Kollosche Commercial recorded a string of major sales throughout the financial year, reinforcing the team’s reputation for securing high-value outcomes in a competitive market. Among the highlights was the $26,000,000 sale of 2375 Gold Coast Highway, Mermaid Beach. This prominent village retail centre, positioned on a major arterial route, is set to be transformed into The Alfred, a $185 million mixed-use development featuring 80 residential apartments and a vibrant retail and dining precinct.

Other standout sales included 210 Marine Parade, Labrador, a site fronting the Broadwater with development approval for a 25-storey residential tower, which sold for $8,750,000, and 2174 Gold Coast Highway, Miami, a fully leased mixed-use site with significant redevelopment potential in the Miami and Nobby Beach corridor, which changed hands for $7,500,000.

Market Sentiment and Outlook

Investor sentiment fluctuated throughout the year, influenced by interest rate movements and political events. The Reserve Bank of Australia’s decisions to cut the cash rate, first in February 2025 from 4.35% to 4.10%, and again in May to 3.85%, have contributed to a notable increase in commercial transaction volumes and renewed buyer interest across sectors.

“We saw a spike in enquiry and transaction volumes after the rate cut,” says Adam. “There’s definitely more confidence returning.”

Looking ahead to FY25-26, the Gold Coast commercial market appears well positioned for continued growth. Office and industrial sectors are expected to lead, supported by tight vacancy, steady rental growth and institutional interest in long-leased, high-performing assets.

“The fundamentals are strong,” says Adam. “We’re optimistic about what the next 12 months will bring.”