The Property Council of Australia’s latest Australian Office Market Report shows that demand for office space in Newcastle’s CBD has fallen over the past 12 months.
Hunter Chair, Ed Crawford, said a variety of factors had pushed the total vacancy rate from 7.3 per cent to 13 per cent in the year to January 2016.
“A Grade office space was at an absolute premium in the city 12 months ago with vacancy at around 2.7 per cent”
“To some extent, we are seeing a return to more normal market conditions”
“There has been a modest supply increase in the past year and a further 11,486sqm of space is due to come online in 2016, with another 9,600sqm being mooted.”
Mr. Crawford said the research showed the changing face of Newcastle’s city centre and the rebalancing of the Hunter economy from mining to non-mining industries.
“In the East End in particular, we’ve seen pockets of run down office space redeveloped into stylish studio apartments and boutique student accommodation”
“As the city reconnects with the waterfront and light rail becomes a reality, the demand for this type of inner city housing will increase and we’ll see the commercial hub march west towards the new transport interchange at Wickham.”
Media contact: Ed Crawford | M 0431 365 780 | E firstname.lastname@example.org
Key market indicators, Newcastle (aggregate)