Home Property Australia Parramatta vacancy rates increase

Parramatta vacancy rates increase

  • August 06, 2015

Parramatta vacancy rates increase

Positive demand was not enough to prevent an increase in vacancy rates in Parramatta’s office market in the past six months, according to the Property Council.

The latest Office Market Report shows the vacancy rate rose from 6.3 percent to 7.4 percent in the six months to July 2015.

“Parramatta’s office market has had positive demand, but it was outweighed by supply additions,” NSW Executive Director Glenn Byres said.

“New stock totaling 10,933sqm entered the market in the past six months, withdrawals totaled 1,117sqm and there was 1,283sqm in net absorption.

“Negative net absorption of 4,257sqm occurred in the A grade market and its vacancy rate rose from 0.8 percent to 2.4 percent in the six months to July 2015.

“There was positive demand in all three other grades – though only the C grade vacancy rate fell, from 18.8 percent to 17.1 percent.”

Mr Byres said there is no new stock due to enter the market in the second half of 2015, but 24,0sqm due in 2016.

 

Analysis & commentary, Parramatta, July 2015

Headline comments:

  • The Parramatta office market vacancy increased over the six months to July 2015
  • The vacancy increase was due to supply additions
  • The A Grade segment recorded negative demand
  • Only the C Grade segment recorded a decrease in vacancy over the period
  • There is no space in the pipeline until 2016

Vacancy analysis:

  • Vacancy increased from 6.3 percent to 7.4 percent over the 6 months to July 2015
  • The increase was due to 10,933sqm of supply additions
  • Net absorption was 1,283sqm while withdrawals totaled 1,177sqm

By grade:

  • A Grade – vacancy increased from 0.8 percent to 2.4 percent due to -4,257sqm of net absorption
  • B Grade – vacancy increased from 8.7 percent to 11.0 percent due to 9,785sqm of supply additions. Net absorption was 3,098sqm while withdrawals totaled 833sqm
  • C Grade – vacancy decreased from 18.8 percent to 17.1 percent due to 1,824sqm of net absorption
  • D Grade – vacancy increased from 2.7 percent to 2.9 percent due to 1,148sqm of supply additions. Net absorption was 618sqm while withdrawals totaled 344sqm

Future supply:

  • There is no space in the pipeline for the second half of 2015
  • A total of 24,0sqm of new space is due to enter the market in 2016
  • 25,000sqm is due to come online from 2017 onwards
  • 66,905sqm of stock is mooted

 

Key market indicators, Parramatta (aggregate)

 

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