Parramatta. Hold on large-scale projects

Restrictions imposed by the credit crunch - lack of commitment from tenants and difficulty in obtaining finance - are holding back large-scale development opportunities in Parramatta, according to the CBRE third quarter MarketView. The developments are necessary to revitalise Parramatta and help it compete with the ever-growing Macquarie Park, Rhodes and Homebush Bay. Developments such as the 20,000-square-metre Eclipse, at 60 Station Street, are aiming to attract new tenants and refresh Parramatta's image. Net additions are expected to average just below 12,000 square metres over the next five years, around 6000 square metres below the five-year historic average. The new 22,500-square-metre headquarters for Sydney Water is a major addition for 2009 and is expected to boost net absorption for that year.