Thursday 1 August 2024
MEDIA RELEASE
Green Shoots but Early Days for Parramatta Office Market
Vacancy rates in Parramatta’s office market have dropped on account of 35,000 sqm in office space being taken off the market as part of the of one of the city’s largest commercial towers.
Property Council Western Sydney Director Ross Grove said the latest Office Market Report for the six months to July shows Parramatta’s vacancy rate is now at 19.4 per cent, a change from 22 per cent in the February report.
“The figures show an improvement in the vacancy rate, however much of this can be attributed to the refurbishment of 35,000 sqm in office space in the Jessie Street Centre at 2-12 Macquarie Street,” Mr Grove said.
“Vacancy rates in Parramatta remain high, and net demand for office space was well below the historical average. The ‘flight to quality’ is still in full-swing with the increase in the take-up of A-grade tenancies being proximate to the reduction in demand for the B-Grade stock.
“Parramatta is a great place to work. It is well connected and enjoys a high standard of public amenity. This has come as the result of century-shaping investments being made in the city’s transport, social and cultural infrastructure that befit a larger workforce presence than the city presently enjoys.
“It is now time to start calling the workforce back to work.
“Hundreds of local businesses depend on regular foot traffic and trade from office workers in Parramatta – local cafes, restaurants, hairdressers, drycleaners – and for these businesses the return of their customers is an important step in realising Parramatta’s potential,” he said.
The latest Property Council of Australia Office Market Report for the six months to July shows:
- Vacancy rates for Parramatta fell from 22.0 per cent to 19.4 per cent
- The period saw 39,741sqm of withdrawals, while 8,899sqm of space was added
- Future supply anticipates 20,547sqm coming online in the second half of this year
- Another 40,000sqm is anticipated in 2025.