New supply lifts vacancy rate in North Ryde
The vacancy rate across the North Ryde commercial office market has increased to 11.2 per cent in the past six months, according to the Property Council of Australia’s latest Office Market Report.
“In the past six months to July 2014, supply increases were not matched by new demand,” says Property Council NSW Executive Director Glenn Byres.
“The vacancy rate rose from 9.5 per cent to 11.2 per cent in the past six months – with all grades of stock experiencing an increase.
“The A grade vacancy rate increase from 8.1 per cent to 9.2 per cent, B grade rose from 12.1 per cent to 16 per cent and C grade rose from 19.1 per cent to 20 per cent.
“Overall demand fell by 3,683sqm. It was in the positive with 17,598sqm in A grade, but fell across B and C grade, with the bulk of the fall being a 21,087sqm drop in net absorption in B grade.
“Supply additions over the past six months totalled 33,236sqm – and there were withdrawals of 20,526sqm.”
Mr Byres says no new supply is forecast for the next 18 months – before 21,0sqm of space is scheduled to hit the market in 2016 and beyond.
Analysis & Commentary, North Ryde, July 2014
Headline comments:
- Vacancy increased over the period
- This was due to supply and negative demand
- B & C Grade both experienced negative demand
- There is no space in the pipeline in the short term
Vacancy analysis:
- Vacancy increased from 9.5 per cent to 11.2 per cent over the 6 months to July 2014
- The vacancy increase was due to 33,236sqm of supply additions and -3,683sqm of net absorption
- Withdrawals over the period totaled 20,526sqm
- B & C Grade both experienced negative demand and have vacancy above 15 per cent
Future supply:
- 21,0sqm of space is in the pipeline for 2016+
- 100,081sqm of projects are mooted
Key market indicators, North Ryde (aggregate)
| Grade | Vacancy, Jul 14 (%) | Vacancy, Jan 14 (%) | Net absorption, 6 months to Jul 14 (sqm) | Net absorption, 12 months to Jul 14 (sqm) |
| A | 9.2 | 8.1 | 17,598 | 10,828 |
| B | 16.0 | 12.1 | -21,087 | -13,312 |
| C | 20.0 | 19.1 | -194 | 2,859 |
| Total | 11.2 | 9.5 | -3,683 | 375 |
Media contact
Glenn Byres
NSW Executive Director
02 9033 1904 or 0419 695 435
John Nguyen
National Research Manager
02 9033 1943 or 0410 449 210
For more information, visit www.propertyoz.com.au/officemarketreport