Rockhampton office market left flat: HTW Commercial

The office market in Rockhampton has stabilised, however remains relatively flat, according to the latest report from valuation firm Herron Todd White.

The property valuation firm found, there have been no major office developments in the CBD since the completion of the NAB building in 2012, however there is still a significant vacancy rate and until existing vacancies are absorbed across the CBD, it is unlikely we will see any other major office developments in the immediate term.

However the Council has recently let the contract for the construction of a new art gallery in the CBD on a 2,800 square metre site.

It will require the demolition of existing office buildings which provide about 3,000 to 4,000 square metres of office space.

The report noted, "rentals have been relatively stable over the past 12 to 24 months, however leases that were negotiated some five to ten years ago that are coming to an end are seeing some re-negotiations as the previous rentals are now considered above market."

"Generally speaking, office rentals within the Rockhampton CBD have been ranging from about $225 to $300 per square metre gross. Rentals above $300 per square metre gross are for prime office tenancies only."

"There have been no recent major transactions of office buildings."

"The most recent was the sale of the NAB building which transacted in 2016 for $9.35 million."

"Owner-occupiers remain fairly active in the market, with most activity in the sub- $1 million price bracket."

"Vacant office buildings have been very thinly traded above the $1 million price bracket in recent years."

"With multiple infrastructure projects commencing and in the pipeline, things are looking positive for the office market in Rockhampton in the short to medium term," the report concluded.