Parramatta vacancy rate remains lowest in Sydney
Parramatta has once again recorded the lowest vacancy rate of any office market in Sydney – despite an increase to 6.7 per cent, according to the Property Council of Australia’s latest Office Market Report.
“The vacancy rate in Parramatta rose to 6.7 per cent – up from 6 per cent in the six months to July 2014,” says Property Council NSW Executive Director Glenn Byres.
“Across the market, a combination of 2,1sqm in supply additions and a drop of 2,786sqm in net absorption produced the slight lift in overall vacancies.
“But the vacancy rate in the A grade market is extremely tight and now sits at just 0.2 per cent – having dropped from 0.5 per cent.
“This was due largely to a 775sqm increase in net demand.
“Vacancy rates in B grade sits at 9.5 per cent – having recorded the only increase of any grade, up to 9.5 per cent from 6.5 per cent in the past six months.
“The C grade rate is 18.3 per cent and the D grade fell from 6.6 per cent to 6.3 per cent.”
There is 9,785sqm of new space scheduled to come into the market in the second half of 2014, but no further committed stock in 2015, and 24,0sqm due to come online from 2016 and beyond.
Analysis & commentary, Parramatta, July 2014
Headline comments:
- The Parramatta office market vacancy increased over the six months to July 2014
- The A Grade segment is very tight
- No space is due to come online in 2015
Vacancy analysis:
- Vacancy increased from 6.0 per cent to 6.7 per cent over the 6 months to July 2014
- The decrease was due to -2,786sqm of net absorption and 2,1sqm of supply additions
By grade:
- A Grade – vacancy decreased from 0.5 per cent to 0.2 per cent due to 775sqm of net absorption
- B Grade – vacancy increased from 6.5 per cent to 9.5 per cent due to -4,344sqm of net absorption and 2,1sqm of supply additions
- C Grade – vacancy decreased from 18.8 per cent to 18.3 per cent due to 4sqm of net absorption
- D Grade – vacancy decreased from 6.6 per cent to 6.3 per cent due to 333sqm of net absorption
Future supply:
- A total of 9,785sqm of new space is due to enter the market in the second half of 2014
- No space is due to be completed in 2015
- 24,0sqm is due to come online from 2016 onwards
- 66,905sqm of stock is mooted
Key market indicators, Parramatta (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 | 0.2 | 0.5 | 775 | 24,139 |
| B | 9.5 | 6.5 | -4,344 | 44,656 |
| C | 18.3 | 18.8 | 4 | -34,134 |
| D | 6.3 | 6.6 | 333 | -32,924 |
| Total | 6.7 | 6.0 | -2,786 | 1,737 |
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