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1 Lake Orr Drive continues to benefit from one of Australia’s tightest office markets, with structural undersupply, strong tenant demand, and rising rents shaping an increasingly favourable environment for high-quality suburban office assets.
Strong precinct performance despite headline vacancy
While the broader Gold Coast office vacancy has risen marginally to 7.5% (Jul-25), much of this uptick has been driven by older secondary stock in precincts such as Southport and Robina–Varsity Lakes. The Robina–Varsity Lakes precinct—where 1 Lake Orr sits—records vacancy of 11.9%, according to the Colliers/PCA graphic above.
However, the composition of vacancy is critical:
- A-Grade vacancy across the Gold Coast is just 2.7%, one of the lowest in Australia.
- Much of the precinct’s vacancy is concentrated in ageing B-Grade stock.
- High-amenity A-Grade buildings such as 1 Lake Orr Drive continue to attract tenants seeking quality and campus-style locations.
This environment positions 1 Lake Orr Drive at the premium end of its sub-market, differentiating it from the older precinct average.
Demand Dynamics Supporting Varsity One
Tenant flight-to-quality continues
As highlighted in the report, the Gold Coast is experiencing a strong migration of tenants into well-located, modern A-Grade space—precisely the offering of 1 Lake Orr Drive.
Key leasing drivers include:
- Superior workplace amenity
- Proximity to education, health, and technology hubs (Bond University, Varsity HQ, Robina Town Centre)
- Ease of access via the M1 and major local arterials
Recent major leases executed:
- Bennett + Bennett – 804 sqm at 1 Lake Orr Drive (highlighting building desirability and competitive positioning)
- Commonwealth – 700 sqm, 35 Robina Town Centre Drive The Rocket – 737 sqm, Robina
This affirms Varsity Lakes as a key node for businesses seeking modern stock with amenity.
Rents & Incentives: Positive Momentum for Premium Buildings
A-Grade Gross Face Rents (Gold Coast)
- Low: $585 psm
- High: $625 psm
- Average: ↑ 8% YoY
Incentives
- 8%–20%, largely stable
For high-quality buildings like 1 Lake Orr Drive, rental growth continues to outpace secondary stock, supported by scarcity of modern accommodation and minimal upcoming supply.
Given its amenity offering and lakeside campus-style environment, 1 Lake Orr Drive is well positioned at the upper end of the A-Grade rental range, especially as tenants increasingly prioritise lifestyle-led office locations.
Market Supply: Structural Undersupply Elevates Value of A-Grade Assets
The Gold Coast office market has lost net stock for a decade, with withdrawals averaging 4,200 sqm per year, compared to just 3,400 sqm of annual supply.
Total market stock has contracted to 465,544 sqm, with very little new pipeline.
The only major project forecast to 2028 is the V&A Broadbeach office (5,500 sqm)—meaning minimal new competition.
Implication for 1 Lake Orr Drive:
With construction costs delaying developments and most new office activity moving to non-core fringe areas, established, modern A-Grade buildings in Varsity Lakes become increasingly valuable and sought after. Limited new supply places upward pressure on both rents and occupancy in the precinct.
Investment Market Strength Supports Asset Value
Colliers’ report records $141 million in office transactions in 2025, up 134% YoY, with the largest being the $109 million Gold Coast Corporate Centre.
For 1 Lake Orr Drive:
- Rising demand for well-located A-Grade assets below replacement cost
- Competition expected to increase with interest-rate easing
- Private capital + owner occupier buyers driving activity
- Premium suburban offices with strong leasing history (such as 1 Lake Orr Drive) are capturing growing buyer interest
Given its A-Grade positioning and strong tenant profile, 1 Lake Orr Drive remains aligned with buyer preferences identified in 2025.
Strategic Outlook for 1 Lake Orr Drive (2026+)
1. Stronger rental growth expected for quality A-Grade suburban assets
With A-Grade vacancy below 3% and virtually no new supply, rents in premium suburban markets are poised to keep rising.
2. Varsity Lakes expected to benefit from broader SEQ growth
Rapid population expansion, infrastructure corridors, and decentralised employment growth continue to attract businesses south from Brisbane.
3. Demand shifting to modern, amenity-rich buildings
1 Lake Orr Drive benefits from:
- proximity to Bond University
- access to talent pools
- lakeside campus feel
- upgraded workplace environments
These drivers mirror the “quality over quantity” shift reflected in Colliers’ report
4. Investment demand improving
Yield compression outlook indicates A-Grade suburban assets may tighten into 2026, improving capital value positioning.
Summary: Why Varsity One Is Well Positioned
✔ Situated in a precinct undergoing positive tenant reshuffling toward quality
✔ A-Grade vacancy of 2.7% creates scarcity value
✔ Rents growing 8% YoY with stable incentives
✔ Supported by major infrastructure and SEQ population expansion
✔ Proven leasing performance (Bennett + Bennett 804 sqm)
✔ Beneficiary of long-term stock contraction across the Gold Coast
✔ Strong investor preference for well-located suburban A-Grade assets
1 Lake Orr Drive remains one of the strongest office assets in the Varsity Lakes/Robina corridor, underpinned by tightening supply, rising tenant demand for quality, and improving investment confidence heading into 2026.