Home Property Australia Demand sees cut in North Shore vacancy rates

Demand sees cut in North Shore vacancy rates

  • August 06, 2015

Demand sees cut in North Shore vacancy rates

Positive demand has seen the vacancy rate fall across the North Shore office market in the past six months, according the Property Council.

The latest Office Market Report shows the vacancy rate fell from 9.4 percent to 8.5 percent in the six months to July 2015.

“The North Shore office market has benefitted from positive net demand in the past six months totaling 11,498sqm,” NSW Executive Director Glenn Byres said.

“Vacancy rates fell in all three sub-markets and across all grades of space on the North Shore, with the exception of Premium.

“North Sydney enjoyed the largest amount of net absorption – 8,363sqm – and its vacancy rate fell from 8.9 percent to 8 percent

“A grade stock across the North Shore enjoyed 5,289sqm in net absorption as its vacancy rate fell from 7.7 percent to 6.5 percent in the six months to July 2015.

“B grade stock also had strong demand with 7,4sqm of net absorption and a drop in the vacancy rate from 10.3 percent to 9.8 percent.

“Chatswood’s vacancy rate also fell from 8.2 percent to 6.8 percent due to positive net absorption totaling 3,267sqm.”

Mr Byres said there is 1,435sqm of new stock due to enter the market in the second half of 2015, and 39,383sqm in 2016.

Analysis & Commentary – North Shore, July 2015

Headline comments:

  • Vacancy for the overall North Shore market decreased over the period
  • This was due to demand and withdrawals
  • All grades recorded vacancy decreases over the period, with the exception of Premium
  • Premium and C Grade recorded negative demand over the period

Vacancy analysis:

  • Total vacancy for the North Shore decreased from 9.4 percent in January 2015 to 8.5 percent in July 2015
  • This was due to 11,498sqm of net absorption and 6,654sqm of withdrawals
  • Premium and C Grade segments recorded negative demand over the period

North Sydney:

  • North Sydney vacancy decreased from 8.9 percent to 8.0 percent over the half year to July 2015
  • This was due to 8,363sqm of net absorption
  • 5,600sqm of space was added while 4,439sqm was withdrawn

Crows Nest / St Leonards:

  • Vacancy decreased from 11.6 percent to 11.2 percent
  • This was due to 1,435sqm of withdrawals
  • Net absorption was -132sqm

Chatswood:

  • Vacancy in Chatswood decreased in the 6 months to July 2015 from 8.2 percent to 6.8 percent
  • The decrease was due to 3,267sqm of net absorption and 780sqm of withdrawals

Future supply:

  • 1,435sqm of space is due to enter the North Shore market in the second half of 2015
  • This will be followed by 39,383sqm in 2016
  • 160,620sqm is mooted

Key market indicators, North Shore (aggregate)

Key market indicators, North Shore (by locale)

 

 

 

Media contact: Glenn Byres | M 0419 695 435 | E [email protected]