Parramatta experiences significant office supply boost

 

The completion of new office accommodation along with the withdrawal of a major tenant has freed up significant premium office space in one of Australia’s fastest growing office markets. 

The Property Council of Australia’s Western Sydney Regional Director Ross Grove said Parramatta was seeing a significant increase in its office vacancy rate as new buildings continued to come online. 

“This increase in supply, particularly at the premium level, will allow local businesses to re-evaluate what their office needs are, and free up opportunities to upgrade their presence in Parramatta. 

“Parramatta’s office future continues to be one of excitement with more than 100,000sqm coming online over the next six months, assuming the present restrictions ease over the short to medium term.” 

The Property Council of Australia’s Office Market report released today reveals a 3.8% increase in the Parramatta CBD office vacancy rate – the highest level seen since July 2010. 

The change is attributed to 26,0sqm of supply additions and 7016sqm of net absorption, which in large part is reflected in the opening of 52 Smith Street in Parramatta and a decision from National Australia Bank to reshape its office presence across the country. 

Mr Grove said the coming completion of 6 and 8 Parramatta Square, along with 6 Hassall Street would continue to add to Parramatta’s premium office space.  

“As these new opportunities come online, the future of some of our older office stock can be revisited,” he said.  

“Parramatta sits the heart of a skilled and talented workforce, and the underlying infrastructure narrative will continue to position it as a destination for future investment. As Parramatta Light Rail comes to completion, and early works begin for Sydney Metro West, this will be one of Australia’s most connected cities and an obvious inclusion on the shortlist for future business decisions.” 

Office Market Report July 2021

Analysis – Parramatta market

Headline comments: 

• Total vacancy in the Parramatta office market increased over the six months to July 2021 

• The increase was due to supply additions and negative demand 
• There is significant space in the pipeline over the next 18 months 

 

Vacancy analysis: 

• Vacancy increased from 6.4 percent to 10.2 percent 

• This was due to 26,0sqm of supply additions and -7,016sqm of net absorption 

 

By grade: 

• A Grade – vacancy increased from 3.4 to 11.4 percent due to 26,0sqm of supply additions and -6,134sqm of net absorption 
• B Grade – vacancy decreased from 6.5 percent to 5.7 percent due to 1,827sqm of net absorption 

• C Grade – vacancy increased from 13.5 percent to 15.9 percent due to -3,095sqm of net absorption 
• D Grade – vacancy decreased from 8.4 percent to 7.9 percent due to 386sqm of net absorption 

 

Future supply: 

• 109,722sqm of space is due to be delivered in the second half of 2021 

• 61,899sqm of space due to come online in 2022 
• 57,579sqm of stock is mooted 

Media contact:  Aidan Green | M 0491 030 028 | E [email protected]