Newcastle office market strong
The Property Council of Australia’s latest Office Market Report shows that Newcastle is one of the strongest metro office markets in the country with an overall vacancy rate slightly decreasing to 7.2 per cent.
The drop in vacancy was due to positive demand and withdrawals indicating Newcastle continues to be a strong, emerging regional office market.
“Newcastle has a strong office market with a growing population and local economic growth. Over the period measured, 11,900sqm of space was added showing there is still a strong supply pipeline,” said Property Council Hunter Regional Director Anita Hugo.
“With another 15,000sqm in the pipeline for 2020 and another 8,200sqm in 2021, we can expect a positive trajectory of growth in the Newcastle office market reinforcing a healthy local economy.”
“More specifically, A Grade office space recorded a substantial vacancy decrease, which indicates that there is strong positive demand for quality office stock in the city, supporting further investment and growth of businesses across Newcastle.
Media contact: Anita Hugo | M 0439 253 710 | E [email protected]
Office Market Report January 2020
Analysis -Newcastle market
Note – analysis is the year to January 2020
Headline comments:
- Total vacancy marginally decreased in the Newcastle market over the year to January 2020
- This was due to positive demand
- The positive demand was concentrated in the A Grade segment
- The lower grades of space have double digit vacancy
- No space is the pipeline to be delivered from 2022 onwards over the medium term
Vacancy analysis:
- Total vacancy marginally decreased from 7.3 percent to 7.2 percent in the year to January 2020
- The decrease was due to 6,892sqm of net absorption
- 11,900sqm of space was added over the period while 4,730sqm was withdrawn
- The positive demand was concentrated in A Grade segment
- The lower grades of space have double digit vacancy
Future supply:
- 15,000sqm of space is due to come online in 2020
- This will be followed by 8,200sqm in 2021
- No space is in the pipeline to be delivered from 2022 onwards over the medium term
- 10,790sqm of space is mooted
Key market indicators, Newcastle (aggregate)
|
Grade |
Vacancy, Jan 20 (%) |
Vacancy, Jan 19 (%) |
Net absorption, 12 months to Jan 20 (sqm) |
|
A |
0.4 |
1.9 |
11,551 |
|
B |
7.8 |
6.5 |
-3,455 |
|
C |
17.2 |
17.0 |
-130 |
|
D |
15.2 |
8.9 |
-1,074 |
|
Total |
7.2 |
7.3 |
6,892 |