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Parramatta records strong positive demand

Parramatta is continuing its rise with more new office space coming onto the market, according to the Property Council of Australia’s Office Market Report released today.

Net absorption in Parramatta has increased to 28,673sqm, while the vacancy rate has risen from 4.8 per cent to 6.4 per cent over the six months to January 2021.

“For all that is going on in the world, Parramatta is still in a strong position,” the Property Council of Australia’s Western Sydney Regional Director Ross Grove said today.

“Parramatta now has more office space leased than it had pre-COVID, and we have more people taking up office space than leaving.

“While there is growing demand for office space, we also had more new office space which came onto the market, meaning our vacancy rate has risen from 4.8 per cent to 6.4 per cent. This is still the lowest vacancy rate of any commercial centre in New South Wales and sits well below the nationwide average, which saw a rise from 9.6 per cent to 11.7 per cent over the same period.

“These results are pleasing for everyone with an interest in the success of Parramatta, but we cannot afford to take our foot off the pedal. We need the government to press on with its infrastructure agenda, and we need the public and private sector to promote the return of workforces to our CBD.

“The return of the workforce to Parramatta is crucial to supporting our local cafes, restaurants and drycleaners. Our small businesses bring life and joy to our city. They’ve been through an extraordinarily tough year and the return of their customers is an important step in reactivating our city, “said Mr Grove.

Media contact: Ross Grove | M 0412 897 130 |   E rgrove@propertycouncil.com.au

Office Market Report January 2021

Analysis – Parramatta market

Headline comments:

  • Total vacancy in the Parramatta office market increased over the six months to January 2021
  • This was due to supply additions
  • Demand was positive and concentrated in the A Grade segment
  • There is space due to come online in 2021 and then again from 2023 onwards

Vacancy analysis:

  • Vacancy increased from 4.8 percent to 6.4 percent
  • This was due to 43,763sqm of supply additions
  • Demand was positive with 28,673sqm of net absorption recorded

By grade:

  • A Grade – vacancy increased from 1.2 percent to 3.4 percent due to 42,000sqm of supply additions
  • B Grade – vacancy increased from 3.7 percent to 6.5 percent due to -6,561sqm of net absorption
  • C Grade – vacancy increased from 12.2 percent to 13.5 percent due to 1,763sqm of supply additions and -210sqm of net absorption
  • D Grade – vacancy decreased from 10.7 percent to 8.4 percent due to 1,815sqm of net absorption

Future supply:

  • 74,021sqm of space is due to come online in 2021
  • There is no space due to be completed in 2022
  • 43,800sqm is due to come online from 2023 onwards
  • 29,529sqm of stock is mooted

Key market indicators, Parramatta (aggregate)

Grade

Vacancy,

Jan 21 (%)

Vacancy,

Jul 20 (%)

Net absorption, 6 months to

Jan 21 (sqm)

A

3.4%

1.2%

33,629

B

6.5%

3.7%

-6,561

C

13.5%

12.2%

-210

D

8.4%

10.7%

1,815

Total

6.4%

4.8%

28,673