Cerno’s A-Grade office asset, Foundation Place at 8 Market Lane, Maroochydore, remains well placed to benefit from the strong precinct momentum unfolding around it.

The fast-growing Maroochydore City Centre has seen two new additions to this exciting and evolving City Centre. Walker Corporation’s 50 First Avenue, located in the heart of the CBD, is nearing completion. This 15-storey Premium A-Grade office will offer a city-scale workplace redefining the future of work on the Sunshine Coast. At the same time, a state-of-the-art 10-storey hospital has officially reached practical completion. Maroochy Private Hospital, purpose-built for world-class medical excellence, innovation, and collaboration, is set to redefine healthcare in the region and become a premier destination for health and research innovation.

Eighteen months into Cerno’s ownership of Foundation Place, market conditions remain characterised by constrained A-Grade supply, low vacancy and consistent demand for quality workspace.

Since ownership, our focus has remained on maintaining high occupancy, managing expiries with discipline and ensuring the asset remains competitive as the new Maroochydore City Centre progresses through its growth phase.

Leasing Outcomes Supporting Income Strength
Leasing activity over the past 18 months has been steady and constructive. Several new agreements have been completed, contributing to rental outcomes significantly above the passing levels at acquisition.

Lessee demand for car spaces has also firmed in conjunction with recent leasing activity resulting in carparking being charged separately, further enhancing the long-term structure and resilience of income.

This improvement aligns with the at-acquisition business plan and is consistent with our forward-looking approach to managing the building’s leasing profile.

Outlook
Cerno continues to prioritise long-term stability and asset stewardship. Our ongoing focus remains:

• Sustaining strong occupancy
• Managing the expiry profile with discipline and maintaining quality lessee relationships
• Ensuring the asset remains competitive as the new Maroochydore City Centre evolves

Cerno continues to monitor market conditions and manage the building with an emphasis on resilience, tenant strength and long-term value creation.