North Shore office market vacancy rate falls

The vacancy rate across the North Shore’s office market has fallen, according to the Property Council of Australia’s latest Office Market Report.

In the six months to July 2016, the vacancy rate fell from 7.8 per cent to 7.2 per cent across the North Shore - comprising North Sydney, Crows Nest/St Leonards and Chatswood.

"The change in vacancy rate was due to withdrawals from the market with negative demand in all markets except Chatswood," NSW Executive Director Jane Fitzgerald said today.

“In North Sydney, the vacancy rate decreased slightly from 7.1 to 7.0 per cent with 28,265sqm of withdrawals and 25,870sqm of negative net absorption,” Ms Fitzgerald said.

“In Crows Nest and St Leonards, the vacancy drop was sharper from 9.6 down to 8.3 per cent but again withdrawals were the key.

“Chatswood also had a falling vacancy rate down to 6.6 per cent in the six months to July 2016. Net absorption was 3,119sqm.”

The A and B grade markets across the North Shore recorded positive demand whereas six months ago, positive demand was only in the B grade market.

Ms Fitzgerald said 45,496sqm of new space is in the pipeline for the remainder of 2016, though substantially more stock is mooted for future years.

For more information or to purchase the July 2016 Office Market Report, click here.

Media contact:  Jane Fitzgerald    E  jfitzgerald@propertycouncil.com.au

 

Office Market Report July 2016

Analysis – North Shore market

Headline comments:

  • Vacancy for the overall North Shore market decreased over the period
  • This was due to withdrawals
  • All North Shore markets recorded a vacancy decrease over the period

 

Vacancy analysis:

  • Total vacancy for the North Shore decreased from 7.8 percent in January 2016 to 7.2 percent in July 2016
  • This was due to 39,431sqm of withdrawals
  • Demand was negative with -28,412sqm of net absorption recorded

 

North Sydney:

  • North Sydney vacancy decreased from 7.1 percent to 7.0 percent over the half year to July 2016
  • This was due to 28,265sqm of withdrawals
  • Demand was negative with -25,870sqm of net absorption recorded

 

Crows Nest / St Leonards:

  • Vacancy decreased from 9.6 percent to 8.3 percent
  • This was due to 11,166sqm of withdrawals
  • Demand was negative with -5,661sqm of net absorption recorded

 

Chatswood:

  • Vacancy in Chatswood decreased in the six months to July 2016 from 7.7 percent to 6.6 percent
  • The decrease was due to 3,119sqm of net absorption

 

Future supply:

  • 45,496sqm of space is due to enter the North Shore market in the second half of 2016
  • No further space in due to come online in 2017
  • 46,600sqm is due to be completed from 2018 onwards
  • 120,520sqm is mooted