Vacancy rates still tight in NSW

NSW continues to have some of the tightest office market vacancy rates in Australia with the CBD rate at 5.9 per cent and now A-grade stock available in Parramatta according to the Property Council’s latest office market report released this month.

The drop in the CBD vacancy rate is due to withdrawals from the market and positive demand, indicating a strong outlook for the state’s largest office market.

We continue to see very strong results for our CBD office market with the latest report showing 75,821sqm of withdrawals and 22,216sqm of net absorption.

Strong demand was seen in the upper grades of office space particularly in premium office space where the vacancy rate dropped from 12.5 to 9.5 per cent.

There is a significant amount of supply coming into the market over the next three years with 184,600 sqm coming on line from 2019 onwards that will meet growing demand.

Macquarie Park was one of the only office markets where the vacancy rate increased due to 13,348sqm of net absorption and 10,800sqm of supply addition and 19,557sqm of space withdrawn over the period

Parramatta continues to grow and develop and we are now seeing the market steady into a long-term trend of growth – vacancy rates in C grade stock dropped again with only slight rises in vacancy rates in B and D grade stock

NSW had five of the top ten markets with the lowest vacancy rates in Australia demonstrating our state continues to foster successful emerging commercial office markets.