Expanding Businesses Flock to Maroochydore

Maroochydore is on the cusp of a new commercial identity, with massive growth amidst new development and a boom in professional services businesses.

Commercial activity continues to exceed expectations as more businesses from southern states open new offices and future-focused companies flock to set up shop in a region known for its entrepreneurialism.

The new Maroochydore City Centre development is creating a flow-on effect for businesses keen to leverage the advantages of being close to Australia’s largest greenfield CBD development.

Ray White Commercial Noosa & Sunshine Coast North Commercial Property Consultant Tallon Pamenter says  Maroochydore is a place where people want to be, as evidenced by countless enquiries and new to market properties being secured at lightning speed.

“Maroochydore is going through massive growth on the back of the CBD expansion and multimillion-dollar investment by Walker Corporation. While the CBD is popular for national tenants, it’s the fringing areas where we are seeing the most action,” Tallon said.

“Business owners can position themselves close to an emerging CBD in a suitable location at a reasonable price. Good operators are coming to the area, either expanding under the same banner or moving their entire operations here.”

In-demand locations include Sugar Road, Maud Street, Wises Road, Duporth Avenue, Ocean Street and the Cotton Tree Esplanade.

CONFIDENCE FUELLING DEMAND

Demand is coming from the north and the south. Continued interstate migration from Sydney and Melbourne means an endless flow of new residents and new businesses. Many Brisbane-based operators are expanding or moving to the coast. Several businesses from Hervey Bay have also taken advantage of the buoyant Sunshine Coast economic conditions and relocated.

“Around 80% of enquiry is for businesses expanding which is huge and exciting, especially after the challenges of the last few years,” says  Commercial Property Consultant Chantel Dielwart.

“Everywhere is busy, everyone is getting back to normality, people are moving on and business confidence is restored, building confidence in investment and commercial activity.”

Australian Bureau of Statistics data shows substantial increases in the number of businesses were already occurring across the Sunshine Coast from 2020 to 2021:

• 306 new professional, scientifical and technical services
• 266 new health care and social assistance businesses
• 176 new retail trade businesses
• 114 new financial and insurance services
• 101 new administration and support services.

PROFESSIONAL SERVICES AND ALLIED HEALTH BOOMING

Opportunities abound to service a growing Sunshine Coast population, forecast to reach  over 500,000 people by 2041 from an estimated population of  343,590 in 2021.

“Professional services and allied health businesses are attracted to the region because of its population growth and lifestyle,” says Chantel. Psychology is booming and we are seeing many lawyers, conveyancers and other professional services make the move, with Maroochydore a favoured destination.”

We’ve previously explored how the  booming Sunshine Coast health sector is a magnet for medical businesses. Tallon reports that medical and allied health services are lured by the momentum and significant investment already underway including the Sunshine Coast University Hospital.

“The Sunshine Coast is no longer a sleepy little beach town. Infrastructure development has caught up, so it’s now a place people want to live. There is growing interest from Melbourne-based doctors, specialists and other medical businesses to move here and open a second location. With all the activity around the Maroochydore CBD it’s an ideal location for expanding healthcare businesses and only a short distance from the health hub at Birtinya.”

RETAIL AND HOSPITALITY ON THE MOVE

Demand for retail and food and beverage space has escalated, with previously empty shops now attracting multiple applications, particularly along the Esplanade in Cotton Tree.

Commercial Property Consultant Adam Morley believes Cotton Tree is a location to watch, with several multi-unit residential buildings, some with associated retail leasing space, changing the feel of the area.

“Cotton Tree is quite cosmopolitan and mirrors the laidback vibe of Gympie Terrace in Noosaville. There’s comparatively good car parking and plenty of green open space overlooking a stunning waterfront. I think we will see high-end restaurants move there or open second locations at Cotton Tree in the coming years,” Adam said.

Some forward-thinking food and beverage businesses are already getting in on the action. Ray White Commercial Noosa & Sunshine Coast North recently leased two spaces side by side at 13-15 The Esplanade Cotton Tree. The 193 sqm properties went to a steak and pizza business relocating from regional NSW and the owners of Kings Beach Bar in Caloundra, who are opening a second location. Long term leases for both include indexed pricing after the first year.

A national company snapped up a strategically positioned 400sqm retail tenancy at 1/48-50 Duporth Avenue Maroochydore with rent around $153,000 per annum net. The business chose Duporth Avenue over a shopping centre due to its exceptional exposure.

IT’S STILL A SELLERS AND LESSORS MARKET

According to Tallon, the continued robust demand for commercial property in Maroochydore, particularly A and B-Grade office space, means sellers and lessors remain positioned for optimum return on investment

“Land scarcity and building cost increases mean new commercial buildings are not going up fast enough to meet demand. As a result, prospective owners and tenants are being quite aggressive in negotiation to secure a property.”

“Tenants are settling for less to secure space because they could miss out. Previously, a tenant may have had a 15-20%  incentive on a five-year lease. They may now settle for 5-10% which is a huge benefit to the owner,” Tallon explained

• Minimum 70-150 sqm
• Access to public transport
• Good car parking
• Reasonable price
• With fit-out completed.

Maroochydore is emerging as a hub of commerce, technology and opportunity, a place where innovative businesses feel right at home and ongoing investment bolsters confidence.

READY TO SELL OR LEASE YOUR MAROOCHYDORE COMMERCIAL PROPERTY?

Ray White Commercial Noosa & Sunshine Coast North has a dedicated office in Maroochydore, located at Suite 1, 27 Sixth Avenue. Contact our team for local expertise, personal service and proven results, by calling  +617 5474 7600, or email noosacommercial.qld@raywhite.com.

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