Parramatta. Office market 'tight'

Conditions remain tight at the top end of the Parramatta office market, according to the Property Council of Australia’s latest Office Market report. “Some marginal shifts did little to change the fundamental story surrounding the office market in Parramatta,” says Property Council NSW Executive Director Glenn Byres. The vacancy rate in Parramatta decreased from 9.1 per cent to 8.7 per cent in the six months to July 2012, the lowest level in four years. Net demand for A Grade space was -358 square metres and pushed the vacancy rate up from 2.1 to 2.2 per cent. B Grade also saw a weakening in demand, with net absorption of –850 square metres and the vacancy rate rising from 4.5 per cent to 5.0 per cent. C Grade saw the strongest growth in demand, with net absorption totalling 3879 square metres and the vacancy rate dropping from 18.8 per cent to 16.2 per cent. D Grade vacancy fell from 15.3 per cent to 15.1 per cent over the period on the back of net absorption of 54 square metres and withdrawals of 487 square metres. Mr Byres said 25,050 square metres of space is scheduled to enter the Parramatta market in the second half of 2012 but no new space is scheduled for 2013.

Parramatta. Office vacancies rise

“The Parramatta CBD is a tale of two cities: solid demand for quality office space and negative demand for lower grade stock,” said NSW acting executive director, Glenn Byres, in the Property Council’s latest Office Market Report. Vacancy rates have risen in the six months to January 2010, from 9.6 percent to 9.8 percent. Vacancies topped 10 percent this time last year. “Vacancies in A Grade stock remain very tight at just 2.4 percent – consistent with the result from six months ago and continuing a strong trend in recent years. A big concern is the spike in vacancy rates for C Grade buildings, which are primarily home to small businesses," Mr Byres said. He said 2967 square metres of new space is due to enter the market in 2010, with no further supply scheduled after that. Parramatta is behind North Ryde in the amount of office space.