Tenant demand for quality office space in North Ryde continues to gain strength and has produced the lowest vacancy rate in four years, according to the Property Council of Australia’s latest Office Market Report.
“Tenants continue to make a claim for quality office space in North Ryde and are driving down vacancy rates as they go,” says NSW Executive Director Glenn Byres.
“The overall vacancy rate in North Ryde fell from 9.8 percent to 8.2 percent in the six months to January 2012, its lowest level in four years.”
“It is being fuelled by strong net absorption in the A Grade market, with 16,662sqm in additional demand over the past six months.”
“It has culled the A Grade vacancy rate to 5.4 percent.”
“B Grade demand fell back by 4,662sqm and led to an increase in the vacancy rate from 10.2 percent to 12.3 percent over the past six months.”
“However, there has been a turnaround in demand for space in the C Grade segment, with net absorption moving -1,600sqm in July 2011 to 863sqm in January 2012, forcing vacancy down from 42.9 percent to 38.8 percent.”
Mr Byres says 10,270sqm of projects are planned for 2012 but no projects are planned 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:
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Vacancy decreased over the period due to demand
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Vacancy is at its lowest level in 4 years
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Only B Grade posted negative demand and a vacancy increase over the period
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No projects are due to be completed in 2013
Vacancy analysis:
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Vacancy decreased slightly from 9.8 percent to 8.2 percent over the 6 months to January 2012
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This is the lowest vacancy in 4 years
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The vacancy decrease was due solely to net absorption of 12,863sqm
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Only B Grade posted negative demand and a vacancy increase over the period. Vacancy here increased from 10.2 percent to 12.3 percent
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A and C Grade posted vacancy decreases to 5.4 percent and 38.8 percent respectively due to positive demand
Future supply:
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10,270sqm of space in the pipeline for 2012
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No projects are planned to be completed in 2013
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40,030sqm of space is due to come online from 2014 onwards
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193,961sqm of projects are mooted
Key market indicators, North Ryde (aggregate)
| Grade |
Vacancy,
Jan 12 (%) |
Vacancy,
Jul 11 (%) |
Net absorption, 6 months to
Jan 12 (sqm) |
Net absorption, 12 months to Jan 12 (sqm) |
| A |
5.4 |
8.4 |
16,662 |
21,821 |
| B |
12.3 |
10.2 |
-4,662 |
-6,983 |
| C |
38.8 |
42.9 |
863 |
-737 |
| Total |
8.2 |
9.8 |
12,863 |
14,101 |
For full analysis and coverage, visit the dedicated website: www.officemarketreport.com.au
