Tenant demand grows stronger in Parramatta

Conditions continue to tighten in the Parramatta office market, fuelled by strong demand at the top end of the market, according to the Property Council of Australia’s latest Office Market Report.

“We are continuing to see demand grow in the office tenancy market in Parramatta,” says NSW Executive Director Glenn Byres.

“The vacancy rate in Parramatta decreased from 9.3 percent to 9.1 percent in the six months to January 2012, its lowest level since July 2008.”

“The vacancy decrease was due solely to positive demand, with net absorption of 1,063sqm in the past six months.”

“The result was spread across the majority of the Parramatta market, with only the C Grade segment posting an increase in vacancy rate, to 18.8 percent.”

“Net demand for A Grade space increased by 790sqm and culled the vacancy rate from 2.4 percent to 2.1 percent.”

“B Grade also saw strong demand, with net absorption totalling 1,765sqm in the past six months, cutting the vacancy rate from 5.6 percent to 4.5 percent.”

“D Grade vacancy fell to 15.3 percent over the period on the back of net absorption of 426sqm.”

Mr Byres says 25,050sqm of space is scheduled to enter the Parramatta market in 2012 but no new space is scheduled for 2013.

Contacts: Glenn Byres, NSW Executive Director, 02 9033 1904 or 0419 695 435
John Nguyen, National Research Manager, 02 9033 1943 or 0410 449 210 

Headline comments:

• The Parramatta office market posted a decrease in vacancy in the six months to January 2012
• Vacancy is at its lowest level since July 2008 
• The vacancy decrease was due solely to positive demand 
• All grades of space except C Grade posted vacancy decreases over the period 
• There is space in the pipeline for 2012

Vacancy analysis: 

• Vacancy decreased from 9.3 percent to 9.1 percent over the 6 months to January 2012 
• This is the lowest since July 2008 
• The decrease was due solely to 1,063sqm of net absorption

By grade: 

• A Grade: vacancy decreased from 2.4 percent to 2.1 percent, due solely to net absorption of 790sqm 
• B Grade: vacancy decreased from 5.6 percent to 4.5 percent, the lowest in 8 years, due solely to 1765sqm of net absorption 
• C Grade: vacancy increased from 17.6 percent to 18.8 percent, the highest since July 1995, due solely to -1,918sqm of net absorption 
• D Grade: vacancy decreased from 15.6 percent to 15.3 percent due solely to net absorption of 426sqm

Future supply: 

• 25,050sqm of space is due to enter the market in 2012 
• Nothing is scheduled to come online in 2013 
• 3,000sqm of projects are planned to be completed from 2014 onwards 
• 61,905sqm of space is mooted

Key market indicators, Parramatta (aggregate)

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