Varsity Market Insights Industrial - April26

MARKET INSIGHTS - INDUSTRIAL

Ray White Tugun Commercial: Varsity Lakes Industrial Market Insights

GOLD COAST COMMERCIAL:

A MARKET ON THE RISE

As we move through 2026, the Varsity Lakes industrial property market has continued to demonstrate its strength, resilience, and long-term appeal The past year has validated much of the optimism seen at the end of 2025, with consistent demand for premium warehousing and sustained confidence from both owner-occupiers and investors. Varsity Lakes has rapidly proven itself as one of the Gold Coast’s most tightly held and soughtafter industrial precincts.

Industrial assets remained standout performers throughout 2026, underpinned by nearhistoric low vacancy rates and strong leasing enquiry. This sector remained highly competitive, with limited supply driving firm rental growth as demand from trade, logistics, and service-based businesses continued to outpace availability The cutting-edge 8 Stapley Drive development perfectly illustrates this demand; featuring 14 modern, high-clearance mixed-use warehouse spaces just 500m from the train station, the complex achieved a rapid 100% sell-out, underscoring the immense appetite for premium facilities with immediate M1 motorway access

Looking ahead beyond 2026, fundamentals across the Varsity Lakes industrial market remain compelling Whether you are a business owner securing a highly connected base, an investor targeting resilient income streams, or a developer assessing future state-backed land activation opportunities, Varsity Lakes continues to offer a compelling commercial proposition Stay tuned as we continue to share market insights, transactional activity, and emerging opportunities across this tightly held precinct.

Ray White Tugun Commercial: Varsity Lakes Industrial Market Insights

MEET THE COMMERCIAL TEAM

Varsity Lakes Relevant Sales

Ray White Tugun Commercial: Varsity Lakes Industrial Market Insights

Varsity Lakes Relevant Leases

BURLEIGH HEADS RELEVANT LEASES

Ray White Tugun Commercial: Varsity Lakes Industrial Market Insights

RWT Commercial Case Studies

SOLD by Ray White Tugun

INDUSTRIAL

SOLD by Ray White Tugun

RIAL N WATERS

LEASED by Ray White Tugun

INDUSTRIAL

Industrial continues to be the region's most competitive commercialsector.

Increase

Rents

Prime sub-5,000 m2 stock has moved from an average of $125/m2 in previous years, to an average of $175/m2 in 2025 (See Figure 1)

Vacancy

Sub-2% in key precincts such as Burleigh Heads, Currumbin Waters, Miami, and Tweed Heads South

Most new vacant listings lease within 12-28 days if priced correctly

Yields

Prime yield range: 5.5% - 6.5% (See Figure 2).

Rents have increased ~45% across the cycle, driven by structural undersupply

Ray White Tugun Commercial: Varsity Lakes Industrial Market Insights

An overview of retail, rent, and investment expectations for 2026, considering2025'sreview.

Industrial

Rents likely to have modest increases but remain high

Vacancy to stay very tight

Construction costs limit new supply → ongoing landlord advantage

Office

Modest rent growth expected

Suburban office to outperform CBD-style formats

Retail

Essential-service retail remains strong

Tourism-lead retial to recover significatnly in second half of 2026

Investment

Yield stabilisation now largely complete

Expect Higher deal volume in 2026

Sub-$2M assets to remain most liquid

Increased interest in development sites if infrastructure timelines progress

Ray White Tugun Commercial: Varsity Lakes Industrial Market Insights

From the RWC Corporate Desk

Topfivecommercialpropertypredictionsfor2026

Livingsectorsbecomethenewinstitutionaldarling

Build-to-rent will enter the institutional mainstream in 2026 as investors seek residential exposure with defensive, inflation-linked income Student accommodation, co-living and modern boarding houses will gain traction amid housing undersupply, while government support accelerates capital deployment. As commercial and residential lines blur, major super funds and offshore investors will validate the sector’s maturity.

Retailsresurgencecontinuestosurprise

Retail is set to sustain its recovery through 2026, supported by limited new supply and stabilising consumer spending. Neighbourhood, supermarket-anchored, and experience-led centres will outperform, benefiting from essential retail demand and experiential trends. Improving foot traffic, rental growth, and renewed investor confidence are expected to drive increased transactions and yield compression, positioning retail as a strong performer in 2026

Constructionsectorreboundunblocksdevelopmentopportunities

After an extended construction slowdown driven by high costs and funding constraints, development activity is expected to cautiously resume in 2026 as feasibility conditions improve. Stabilising construction costs, easing labour pressures and stronger occupier pre-commitments will support selective projects across industrial, premium office and retail sectors While not a boom, this signals a disciplined normalisation of development activity, underpinned by renewed lender confidence

Constructionsectorreboundunblocksdevelopmentopportunities

From 2026, the Sustainable Finance Taxonomy will reshape commercial property finance and valuation. Access to capital will increasingly depend on NABERS ratings, net zero pathways, or proven sustainability improvements Assets with weak ESG credentials will face higher borrowing costs, reduced investor demand, and widening value gaps. Sustainability will become a core pricing driver, with properties that fail to meet evolving standards facing structural devaluation.

Thegreatofficeseperationcontinues

In 2026, the gap between premium and secondary office assets will widen Premium buildings with strong ESG credentials, modern amenities, and prime locations will continue to attract tenants and maintain low vacancies. Well-located, high-quality B-grade assets may benefit from affordability-driven demand, while lower-quality secondary stock risks obsolescence. Vacancy and capital value gaps will grow, amplified by rising sustainability requirements and tenant demand for NABERS-rated spaces, creating a nuanced market beyond a simple A-grade versus secondary divide.

97 1,500+ 557 $151,745,750 $3,646,500 RWT ONLINE AUCTION SUMMARY - 25/26 FY SO FAR...

ScantheQRcodetovisitourcommercialhub&for moreinformation

ScantheQRcodeforanobligationfreeappraisal