The Property Council of Australia and City of Parramatta have partnered with Deloitte to launch the research report Parramatta: The heart of global Sydney which identifies prospective new entrants to the Parramatta CBD in the wave of an unprecedented new wave of office stock coming online.
Lord Mayor of Parramatta Councillor Pierre Esber said Parramatta’s CBD is a growing economic powerhouse.
“Parramatta is the true beating heart of Greater Sydney – and with more people set to live to its west than its east by 2036, it makes sense more and more businesses are building a presence here,” Cr Esber said.
“The billions of dollars of investment transforming our City have made it a marketplace of ideas and a magnet for culture, talent and entrepreneurship. It’s a natural choice for commercial tenants looking for new headquarters.”
The Property Council of Australia’s Western Sydney Regional Director Ross Grove said the paper’s launch charts a course for maintaining the momentum of Parramatta into the future.
“Parramatta’s office market has undergone a massive transformation,” Mr Grove.
“We have seen a wave of new A-Grade office stock opening up across multiple sites at once. This stock is filling-up, but it is often coming at the expense of the existing B-Grade office market – so we’ll need additional commercial tenancies to grow the size of the pie for everyone.”
The paper stems from months of engagement with leaders in commercial real estate, landlords, tenants and business leaders from across the region.
The strategy identifies five prospective growth markets for new office tenancies:
- Attract and support industrial tenants’ corporate offices. Strong demand for industrial land has put pressure on industry to get more from the operational output of their sites, driving the relocation of administrative functions into the CBD. In 2022, 47 per cent of the new major tenants leasing in Parramatta were relocating from industrial lands. Recent examples include Endeavour Energy, LG and Hitachi.
- Harness the strategic and cultural connectivity of a diverse population. 57.6 per cent of Parramatta’s residents were born overseas. Parramatta’s global connection through its residents and businesses presents a unique opportunity to attract talent, forge links with global businesses and foster connectivity.
- Complement the Westmead precinct. A key challenge for the Westmead Health and Innovation District is its land constraints. The Parramatta CBD provides the right balance where proximity to Westmead is valuable, but not critical in meeting day-to-day operational requirements.
- Build the Information Technology services sector. There is a strong alignment between this sector and the resident workforce in Western Sydney, along with access to university education and business start-up hubs.
- Develop the media, film and arts economy. ABC’s move to Parramatta, alongside State government investment in cultural infrastructure such as the Powerhouse Museum have the potential to catalyse interest from supporting creative industries.
The report identifies next steps for government and industry to pursue to ensure these opportunities can be realised.
More information on the report can be found at https://www.deloitte.com/au/en/services/audit/analysis/parramatta-city-tenant-attraction-opportunities.html