Aniko Group’s $2 billion The Landmark to add a year’s supply to Gold Coast office market

The Gold Coast’s super tight A-grade office market is about to get a major boost as Aniko Group gears up for construction of its $2 billion mixed Mermaid Beach project The Landmark, with the development set to deliver the equivalent of more than a year’s worth of supply.

The Landmark, a mixed-use project set to rise on a 1.13 hectare site bounded by Seaview Avenue and the Gold Coast Highway, will create up to 11,000 sqm of office space in the sought-after central Gold Coast market and provide the largest injection of new office space to the city since The Oracle was completed 14 years ago.

The development has been hailed a welcome relief by the real estate industry as vacancy rates on the Gold Coast, particularly A-grade stock, plumb record lows.

The most recent analysis by Colliers showed that net absorption of office space in the six months to January hit 4,490sqm, with A-grade properties recording the highest level of demand.

Based on the latest net 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 across the broader market. 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,” said Colliers Gold Coast director-in-charge Steven King.

“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.”

Positioned prominently at the entrance to the iconic Pacific Fair Shopping Centre, The Landmark will be supported by easy access to the Broadbeach South light rail station and bus interchange to create an uber-connected community and support a new urban heart for Mermaid Beach.

Gold Coast A-grade stock comprises a total area of 87,203 sqm out of the city’s total estimated office space of 460,510 sqm. With 11,000 sqm being added by The Landmark, the development will boost the city’s A-grade offering by almost 14 per cent and see it as the second largest office tower behind 50 Cavill Avenue.

“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,” King added.

“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.”

Despite the impact of higher interest rates on the Australian economy, the Gold Coast office market remains robust, thanks to continued strong population and business growth, CBRE predicts that Gold Coast office vacancy will remain at one of the lowest rates in the country.

“The Gold Coast office vacancy rate could fall to 2-3 per cent by 2025. 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,” said Tania Moore, senior director of investor leasing of CBRE Gold Coast.

CBRE’s Gold Coast Office Market Report revealed that the city’s vacancy rate remains 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,” 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 restaurants 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 a ground floor retail and dining precinct. 

The prime location of The Landmark will provide office occupants with an enviable office space, but more than this, it is 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,” said Aniko Group managing director George Mastrocostas.

“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”. 

Aniko Group is planning to make a start to construction of The Landmark by the end of this year.