The Property Council of Australia”s latest OfficeMarket Report for Newcastle has shown demand for office is strong withincreased supply coming online over the past year to January 2023.
Property Council of Australia”s Hunter RegionalDirector Anita Hugo said while there was an increase in overall vacancy rate to11.7, this is largely due to additional supply – rather than tenants movingout.
“What the results are showing are that despite thepandemic and changes in working habits, we have a strong, emerging regionaloffice market with growing population, local economic growth and a strongsupply pipeline.”
Ms Hugo said the Newcastle CBD would continue toprosper with 12,334sqm of space due to come online in 2023 and 16,266sqm in2024.
“Businesses are continuing to recognise how attractivethe regional office is to employees as we continue to see more people migratefrom large cities post pandemic,” she said.
“We know that places like Newcastle are increasinglyattractive as centres of economic activity as they also offer the lifestylethat more and more people are seeking, and we need to harness this opportunity.
“Our proximity to Sydney, our large and skilledworkforce and excellent work-life balance, makes Newcastle a key employmentdestination and we must continue working together to support good strategicplanning and the growth of our city.
“This means working strategically with keystakeholders and all levels of government to the economic growth of our city,backed by good decision making and planning that supports business andinvestment in our CBD.”
Media:Â Â Anita Hugo | M: 0439 253 710 | E: [email protected]
OfficeMarket Report January 2023
Analysis”” Newcastle market
Note “”analysis is the year to January 2023
Headlinecomments:
- Total vacancy increased in the Newcastle market over the year to January 2023
- This was due to supply additions
- Demand was positive
- Only the D Grade segment recorded single digit vacancy
- There is some space in the pipeline due to come online over the next 2 years
Vacancyanalysis:
- Total vacancy increased from 10.8 percent to 11.7 percent in the year to January 2023
- The increase was due to 10,621sqm of supply additions
- Demand was positive, with 3,655sqm of net absorption recorded
- 3,770sqm of space was withdrawn
- Only the D Grade segment recorded single digit vacancy
Future supply:
- 12,334sqm of space is due to come online in 2023
- This will be followed by 16,266sqm in 2024
Key market indicators, Newcastle (aggregate)
