Parramatta’s office market remains tight at the top

Parramatta’s office market has the second lowest vacancy rate in the country, according to the Property Council of Australia’s latest Office Market Report.

The vacancy rate fell in Parramatta from 5.6 per cent to 4.5 per cent in the six months to July 2016.

"Parramatta’s sub 5 per cent vacancy rate puts it second on the list of office markets across the country,” NSW Executive Director Jane Fitzgerald said today.

“Vacancy rates decreased across A, B and C grade assets in the last six months due to a mix of positive demand and withdrawals.

“The A grade vacancy rate in Parramatta fell over the past six months to zero due to strong demand.  At the other end of the scale, the D grade vacancy rate increased from 3.1 per cent to 5.1 per cent due to negative demand and withdrawals.

Over the six months, only 1,470sqm of space was added.

“A total of 26,000sqm of new space is due to enter the market in the second half of 2016,” Ms Fitzgerald said.

“But, no space is planned for 2017 and it won’t be until 2018 when 60,000sqm is due to come online.

Since the last report, there is substantially more stock mooted – now a further 125,000sqm is on the cards.

For more information or to purchase the July 2016 Office Market Report, click here.

Media contact:  Jane Fitzgerald  |  E  jfitzgerald@propertycouncil.com.au

 

Office Market Report July 2016

Analysis –Parramatta market

Headline comments:

  • Total vacancy in the Parramatta office market decreased over the six months to July 2016
  • The decrease was due to positive demand and withdrawals
  • Only the D Grade segment recorded negative demand and an increase in vacancy over the period
  • There is no space in the pipeline in 2017


Vacancy analysis:

  • Vacancy decreased from 5.6 percent to 4.5 percent over the six months to July 2016
  • The decrease was due to 7,582sqm of net absorption and 1,908sqm of withdrawals
  • 1,470sqm of space was added over the period


By grade:

  • A Grade – vacancy decreased from 1.7 percent to 0.0 percent due to 4,647sqm of net absorption
  • B Grade – vacancy decreased from 8.4 percent to 6.8 percent due to 3,868sqm of net absorption and 715sqm of withdrawals. Supply additions totalled 1,100sqm
  • C Grade – vacancy decreased from 12.6 percent to 11.0 percent due to 1,610sqm of net absorption
  • D Grade – vacancy increased from 3.1 percent to 5.1 percent due to -2,543sqm of net absorption and 1,193sqm of withdrawals. 370sqm of space was added over the period

Future supply:

  • A total of 26,000sqm of new space is due to enter the market in the second half of 2016
  • No space is planned for 2017
  • 60,000sqm is due to come online from 2018 onwards
  • 125,000sqm of stock is mooted