The Central Coast commercial property market is an increasingly dynamic and lucrative space. From major investments to small business operations, the market is transforming rapidly and presents a diverse range of opportunities for investors and tenants alike. With the new year, it is more important than ever to stay ahead of the trends that will shape the Central Coast commercial property market in 2023. From regional investment to new technology, this article will outline the five major trends that will affect the Central Coast commercial property market in the year ahead. With a better understanding of these trends, property owners, tenants and investors can prepare themselves for the changes to come and ensure they make the most of the opportunities that arise.
Overview of the Central Coast Commercial Property Market
The Central Coast is the region located on the coast of New South Wales, Australia. The region is home to approximately 340,000 people, with Gosford, Erina and Tuggerah serving as the three major hubs. The commercial real estate sector has been experiencing strong growth over the past few years, driven by the increase in demand for office space on the Central Coast. The region is also an important industrial and agricultural hub, which has resulted in an increase in demand for warehouse listings and retail the food space). The average vacancy rate in the Central Coast commercial property market was 6.7% in 2018, which indicates healthy demand and while more recent official numbers have not been released, we have seen an overall tightening of the market since then. Additionally, the average asking rent for warehouse space in the Central Coast was around $100 per sqm in 2018. The average asking rent for the same warehouse space is now $130 per sqm.
Regional Investment in the Central Coast
While the Central Coast has traditionally been a regional office hub and commercial retail location with an industrial market to cater to local demand, regional investment in the area is expected to ramp up in the coming years. A wide variety of industries are represented on the Central Coast, with industries such as technology, logistics, government and healthcare playing a significant role in the market. Regional investors are drawn to the Central Coast for its strategic location and strong economic growth, with the Gosford region expected to experience an annual growth rate of 2.6% through 2023. The Central Coast region has an established infrastructure network, an educated workforce, and a strategic location that allows business owners to capitalise on the region. Additionally, investors can also enjoy the relative affordability of the Central Coast compared to other major office markets in Australia. These factors are expected to result in increased regional investment in the Central Coast commercial property market in the coming years.
Technology and Automation in the Commercial Property Market
Technological innovations are expected to play a key role in the Central Coast commercial property market in the coming years. From improvements in how buildings are constructed to advancements in energy efficiency and automation, these technologies can help improve profitability for property owners and make their spaces more attractive to tenants. Buildings constructed with the latest technology are expected to last longer, which will lead to lower maintenance costs for building owners. Additionally, technological improvements in building
materials make these buildings more sustainable and energy efficient. From solar panels and rainwater harvesting to improved heating and cooling systems, these buildings can be designed to function without direct human input. This technological advancement will also have positive implications for the tenant experience. From digital tenant interiors to smart building technology, landlords can use automation to improve their tenants’ experience and provide more value.
Sustainability Initiatives in the Central Coast Commercial Property Market
As climate change and sustainability concerns become more pressing, many commercial property owners are turning to sustainable business practices to reduce their environmental impact. An increasing variety of sustainability initiatives are in place throughout the Central Coast commercial property market, and these practices are expected to continue growing as time progresses. Energy-efficient buildings are growing in popularity in the Central Coast commercial property market, with landlords investing in retrofitting and new building technologies to decrease their building’s carbon footprint. Water and waste reduction efforts are also becoming increasingly common in the area and are expected to continue growing in the future. Sustainable practices have become increasingly important in the Central Coast commercial property market and are expected to continue growing in the future.
Increased Demand for Flexible Tenancies
Flexible tenancies have become increasingly popular in the Central Coast commercial property market in recent years. This type of tenancy allows tenants to customise the number of employees they can cater to and what other utility they can gain from their space. This flexibility can be an attractive option for businesses that are just starting out and do not yet have a reliable revenue stream, allowing them to sublease part of their space while they grow, or monetise the unused space via other methods. As these types of tenancies become more popular and their benefits become more widely known, they are expected to see even greater demand in the coming years. While flexible tenancies are not exclusive to the Central Coast commercial property market, they are expected to become more popular in the years ahead. This is because the flexibility of these arrangements is expected to be appealing to both landlords and tenants, since they allow greater popularity and flexibility for the parties. Through the last few years, workplaces have had to adapt and learn to pivot as
markets and economic conditions change. We see this being a strong trend going into the future.
Conclusion: How to Prepare for the Changes Ahead
The Central Coast commercial property market is a dynamic space. It offers a diverse range of opportunities for landlords, buyers (developers, investors and owner-occupiers), and tenants alike. We expect to see these (and other) trends play a strong role in shaping the future of the local and broader commercial property markets. So, to give yourself every advantage, make sure you stay up to date on the latest trends and take early action to prepare for their impact (such as keeping your building green and modern). Landlords,
buyers (developers, investors and owner-occupiers), and tenants can ensure they are ready for what comes next and will be better placed to take advantage of the opportunities that arise by keeping a keen eye on the future.
