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.

Parramatta. Dramatic increase in sales volume

Quarter four of 2009 saw investment activity in Parramatta closely mirror sales results in North Sydney with a dramatic increase in sales volume, according to the CB Richard Ellis Sydney Metropolitan Office, first quarter 2010 Marketview report The sales of 25 Smith Street, $48.4 million, 93 George Street $18.5 million, and 20 Charles Street, $20.2 million, all helped to confirm the current yield level in Parramatta. As at March 2010, grade A yields ranged between 8.75 per cent and 9.50 per cent, with the indicative rate of 8.75 per cent, compared with the 7.31 per cent recorded in December 2007. Grade B properties performed similarly over this period with indicative yields sliding out from 8.57 per cent to 9.89 per cent over the same period. The resultant drop in capital values between December 2007 and December 2009 is likely to have been 14.9 per cent and 10.7 per cent for grade A and B respectively, the report said.

Parramatta. Massive potential for office space

The Sydney Water headquarters was the only significant addition to the Parramatta market over the last two years and this trend is likely to continue in 2010, with no office buildings forecast to complete during the year, according to the CB Richard Ellis Sydney Metropolitan Office, first quarter 2010 Marketview report. There are a number of development sites scattered throughout the Parramatta CBD, such as, the Exchange, 2 Fitzwilliam Street/127 Argyle Street, Eclipse, 60 Station Street, 105 Phillip Street, 111George Street and Civic Place. The selection of prime development sites could yield over 150,000 square metres and there is the potential for these buildings to begin construction over the short term, which will allow Parramatta to compete with the emerging markets, which surround it such as Homebush Bay, Rhodes, Macquarie Park and Norwest. Parramatta has 682,557 square metres of office space. As at March 2010, grade A gross rents ranged between $375 per square metre and $438 per square metre, with an indicative level of $417 per square metre, the report said.

Parramatta. Rise in office vacancy

Total office vacancy in Parramatta, in the six months to January 2009, rose by 2.8 percentage points to 10.1 per cent, the highest level since July 2006. Despite this, grade A vacancy remained just 20 basis points above the lowest level recorded at 3.1 per cent, with at just 6471 sq m vacant as at January 2009, according to the CBRE Sydney Metropolitan Office Marketview