Parramatta's Office Market Continues to Expand
Despite a challenging economic climate, Parramatta’s office market continues to grow, with more stock coming on online and a net gain in the amount of leased space.
Property Council of Australia’s Western Sydney Regional Director Ross Grove said Parramatta had more towers reaching completion, and the demand for tenancies is three times as high as the historical average.
“Parramatta has recorded ‘positive demand’ over the past six months with newly leased office space outstripping recently vacated space by 15,062sqm,” Mr Grove said.
“Put simply, this means we have more people coming in than going out.”
“In addition to the positive demand for space, the introduction of 99,722sqm of A Grade space to the market has led to an increase in the vacancy rate of 3.5 percent.
“Parramatta has in recent years had one of the lowest vacancy rates in New South Wales, which made it difficult for tenants adjust their needs by moving across spaces within the same market.”
Mr Grove said the introduction of new stock, particularly at the A Grade level, bodes well for the city’s future.
“The fundamentals of Parramatta are incredibly strong. A shared public and private vision for the future of the city has been supported by an ambitious infrastructure program which has inspired the private sector to look upon it favourably,” he said.
“Parramatta’s office market will continue to perform well as the city continues to become an employment destination of choice for the surrounding population catchment.
“It is critical for the livelihood of our CBDs that office workers are allowed to and encouraged to rediscover the energy and joys of working in our cities and with our colleagues. It is vital this starts with leadership from the top – the return of public sector workers.”
State Member for Parramatta Dr Geoff Lee welcomed the latest figures.
“Parramatta is in great shape. We are pleased to see the industry is moving to open up shop in Parramatta in response to our substantial infrastructure pipeline,” Dr Lee said.
“The NSW Government’s unprecedented wave of investment in Parramatta’s future through light rail, metro, health, education and cultural infrastructure is driving jobs into our city and improving our quality of life.”
Media contact: Aidan Green | M 0491 300 28 | E [email protected]
Office Market Report January 2022 Analysis – Parramatta market
- Total vacancy in the Parramatta office market increased over the six months to January 2022
- This was due to substantial supply additions
- Demand was positive and concentrated in the A Grade segment
- There is no space due to come online after 2022
- Vacancy increased from 9.9 percent to 13.4 percent
- This was due to 99,722sqm of supply additions
- Demand was positive, with 15,062sqm of net absorption recorded
- Withdrawals totalled 48,480sqm
- A Grade – vacancy increased from 11.4 percent to 17.6 percent due to 99,722sqm of supply additions
- B Grade – vacancy increased from 4.8 percent to 5.3 percent due to 21,846sqm of net absorption
- C Grade – vacancy decreased from 15.9 percent to 13.9 percent due to 4,624sqm of withdrawals
- D Grade – vacancy increased from 7.9 percent to 9.1 percent due to -4,518sqm of net absorption
- 101,790sqm of space is due to come online in 2022
- 95,632sqm of stock is mooted
Key market indicators, Parramatta (aggregate)