Parramatta’s office market remains tight at the top
Parramatta’s office market has the lowest vacancy rate among the major markets in Sydney, according to the Property Council of Australia’s latest Office Market Report.
The vacancy rate fell in Parramatta from 6.7 percent to 6.3 percent in the six months to January 2015.
“Parramatta has retained its status as the office market with the lowest vacancy rate in Sydney,” NSW Executive Director Glenn Byres said today.
“But the tale across asset grades varies substantially – with a 0.8 percent rate for A grade assets, 8.7 percent for B grade and 18.8 percent for C grade.
“It is also worth noting the vacancy rate’s decline was more about stock being withdrawn than new demand.
“Withdrawals totalled 7,711sqm in the six months to January 2015, while net absorption fell by 4,4sqm over the same period.
“Only B grade assets enjoyed a lower vacancy rate and positive demand in the last six months – dropping from 9.5 percent to 8.7 percent and having 761sqm of net absorption.”
Mr Byres said 12,306sqm of new space is due to enter the market in 2015, followed by 24,0sqm in 2016 – though substantially more stock is mooted.
For further comment:
|
|
|
|
Glenn Byres |
John Nguyen |
|
|
|
Attached: Further vacancy analysis
Analysis & commentary, Parramatta, January 2015
Headline comments:
- The Parramatta office market vacancy decreased over the six months to January 2015
- The vacancy decrease was due to withdrawals
- The A Grade segment remains very tight
- Only the B Grade segment recorded positive demand
- There is a steady stream of space in the pipeline
Vacancy analysis:
- Vacancy decreased from 6.7 percent to 6.3 percent over the 6 months to January 2015
- The decrease was due to 7,711sqm of withdrawals
- Net absorption was -4,4sqm
By grade:
- A Grade – vacancy increased from 0.2 percent to 0.8 percent due to -1,641sqm of net absorption
- B Grade – vacancy decreased from 9.5 percent to 8.7 percent due to 1,003sqm of withdrawals and 761sqm of net absorption
- C Grade – vacancy increased from 18.3 percent to 18.8 percent due to -492sqm of net absorption
- D Grade – vacancy decreased from 6.3 percent to 2.7 percent due to 6,708sqm of withdrawals. Net absorption was -3,078sqm
Future supply:
- A total of 12,306sqm of new space is due to enter the market in 2015
- This will be followed by 24,0sqm in 2016
- 25,000sqm is due to come online from 2017 onwards
- 76,905sqm of stock is mooted
Key market indicators, Parramatta (aggregate)
|
Grade |
Vacancy, Jan 15 (%) |
Vacancy, Jul 14 (%) |
Net absorption, 6 months to Jan 15 (sq m) |
Net absorption, 12 months to Jan 15 (sq m) |
|
A |
0.8 |
0.2 |
-1,641 |
-866 |
|
B |
8.7 |
9.5 |
761 |
-3,583 |
|
C |
18.8 |
18.3 |
-492 |
-42 |
|
D |
2.7 |
6.3 |
-3,078 |
-2,745 |
|
Total |
6.3 |
6.7 |
-4,4 |
-7,236 |
More information available at www.propertyoz.com.au/officemarketreport