Thursday 3 August
Parramatta’s office market adjusts to era of new towers
Newer commercial office towers continue to prove popular with Parramatta office tenants, with positive net absorption for A-Grade office tenancies, according to today’s Property Council of Australia Office Market Report.
According to the report, Parramatta’s A-Grade office space experienced an increase in net absorption of 9,739sqm, meaning more tenants were moving into these assets than leaving, while the B-Grade figures were in the reverse direction, with a negative net absorption of 39,061sqm.
“The good news is that our newer A-Grade stock is continuing to fill-up,” Property Council’s Western Sydney Regional Director Ross Grove said.
“The challenge for Parramatta is its change in B-Grade vacancy rate – it’s a great opportunity for up-and-coming local enterprises to consider how and where they wish to expand.
“Parramatta’s office market has added more than 320,000sqm since January 2020 – an increase of almost 50 per cent in three and a half years, so it stands to reason there will be some room to grow in the short to medium term.
“When Parramatta’s surge in office space was initially planned, nobody anticipated the short-term challenges of COVID lockdown, compounded by changing trends in working from home and a tightening macroeconomic landscape. That being said, the fundamentals behind Parramatta continue to be strong and the industry remains here for the long-haul.
“Parramatta is a well-located and attractive place to locate a workforce and the ongoing pipeline of both transport and cultural infrastructure positions it well for the future. Leases are considerably more affordable and present an opportunity to locate a business closer to a well-educated and diverse workforce at the heart of Western Sydney.
“It is critical further uncertainty is not introduced to the Parramatta landscape. We have century-shaping transport infrastructure under construction as we speak, so it is critical the NSW Government stay the course on Sydney Metro West and Stages 1 and 2 of Parramatta Light Rail,” he said.
Parramatta’s overall office vacancy rate has risen to 23.4 per cent with 8,889sqm in new space set to come online by the second half of 2023.
Media contact: Ross Grove | 0412 897 130 | [email protected]