Friday, 16 December 2011

Parramatta. Office space additions

Annual additions to office space in the Parramatta CBD have been relatively low over the past five years averaging 19,255 square metres per annum, according to the CBRE MarketView, Sydney Metropolitan Office market, third term 2011.

This is likely to increase as approximately 75,000 square metres of new office space supply are anticipated to be completed from 2012-2015.

One of these developments is the 25,000-square-metre, Eclipse, which is currently under construction, at 60 Station Street, after securing 70 per cent in tenant pre-commitment and due for completion in mid-2012.

Over the three quarters to September 2011, gross face indicative rents for grade A properties increased by 2.8 per cent to reach $450 per square metre.

This was within a range of $413 per square metre to $543 per square metre and forecast to grow by an average of 3.4 per cent per annum from 2011-2015, the CBRE report said.

It is predicted between 2011 and 2015, total vacancy rate in Parramatta will average 7.3 per cent with 2014 likely to see a vacancy peak at 8.3 per cent and fall again in 2015.