North Shore office market vacancy rate up

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

In the six months to January 2017, the vacancy rate increased from 7.3 per cent to 8.0 per cent across the North Shore - comprising North Sydney, Crows Nest/St Leonards and Chatswood.

"The change in vacancy rate was due to supply additions with positive demand experienced overall on the North Shore," NSW Executive Director Jane Fitzgerald said today.

“In North Sydney, the vacancy rate increased slightly from 7.0 to 7.1 per cent with 45,132sqm of supply additions and 27,068sqm of net absorption indicating positive demand,” Ms Fitzgerald said.

“In Crows Nest and St Leonards, the vacancy increase was sharper from 8.5 per cent up to 10.5 per cent due to 22,878 sqm of negative net absorption.

“The Chatswood vacancy rate was up to 7.7 per cent in the six months to January 2017 due to 3,310 sqm of negative net absorption.

“The North Shore has experienced a solid six-month period with 880 sqm of net absorption recorded, but we must continue to encourage demand and economic growth if we are to fully realise the potential of these markets outside of the Sydney CBD.”

“By encouraging growth and new investment in North Shore markets we can ensure new job opportunities are created here, rather than interstate or overseas. The investment in Sydney Metro Northwest will improve connectivity but more can be done.”

Ms Fitzgerald said 3,233sqm of new space is in the pipeline for the remainder of 2017, with no further space to come online in 2018.

For more information or to purchase the January 2017 Office Market Report, click here.

Media contact:  William Power  | M 0429 210 982 |   E wpower@propertycouncil.com.au