Sydney CBD vacancy rate drops
The Sydney CBD office market continues to be the strongest CBD market in Australia with the vacancy rate dropping from 6.2 to 5.9 per cent in the six months to July 2017 according to the Property Council of Australia’s latest Office Market Report released today.
The drop in the 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 – the Sydney CBD continues to go from strength to strength,” Property Council NSW Executive Director Jane Fitzgerald said today.
“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 considerable amount of supply coming into the market with 184,600 sqm coming on line from 2019 onwards that will meet growing demand.
“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.
“Finalising key planning documents such as the Central Sydney Planning Strategy will provide more certainty to the industry and ensure we continue to see strong growth in our CBD.”
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Office Market Report July 2017
Analysis – Sydney CBD market
- Sydney CBD vacancy decreased over the period
- The decrease was due to withdrawals and positive demand
- Positive demand was concentrated in the upper grades of space
- There is a considerable amount of space in the pipeline over the short to medium
- Vacancy in the Sydney CBD office market decreased from 6.2 percent to 5.9 percent
- This was due to 75,821sqm of withdrawals and 22,216sqm of net absorption
- 83,534sqm of space was added over the period
- Vacancy decreased from 12.5 percent to 9.5 percent
- This was due to 35,930sqm of net absorption
- 2,468sqm of space was added over the period
- Vacancy decreased from 4.1 percent to 3.6 percent
- This was due to 66,313sqm of net absorption
- Supply additions totalled 59,316sqm
- Vacancy increased from 4.0 percent to 5.8 percent over the period
- This was due to -48,084sqm of net absorption and 21,750sqm of supply additions
- Withdrawals over the period totalled 44,964sqm
- Vacancy increased from 6.6 percent to 6.9 percent
- This was due to -28,807sqm of net absorption
- Withdrawals over the period totalled 29,367sqm
- Vacancy increased from 2.9 percent to 3.8 percent
- This was due to -3,136sqm of net absorption
- 1,490sqm of space was withdrawn over the period
- 48,595sqm of new stock is due to enter the market in the second half of 2017
- 69,901sqm is due to be completed in 2018
- 184,600sqm is due to come online from 2019 onwards
- A total of 24,000sqm of space is mooted