Tenant demand for quality office space in North Ryde continues to gain strength and has produced the lowest vacancy rate in more than four years, according to the Property Council of Australia’s latest Office Market Report.
“The vacancy rate in North Ryde continues to shrink as tenants stake a claim for quality office space,” says Property Council NSW Executive Director Glenn Byres.
“The overall vacancy rate in North Ryde fell from 8.2 percent to 6.7 percent in the six months to July 2012, its lowest level since January 2008.
“It is being fuelled by strong net absorption in the A Grade market, with 17,721 sqm in additional demand over the past six months.
“The A Grade vacancy rate has been cut to 4 percent.
“B Grade demand rose by 1282sqm and led to a dip in the vacancy rate from 12.1 percent to 11.6 percent over the past six months.
“C Grade demand also followed the trend, with 2290 sqm of net absorption dropping the vacancy rate from 38.8 percent to 27.6 percent.”
Mr Byres says 29,324 sqm of space is planned for 2013 but no projects are planned for 2012 or 2014.
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 four and a half years
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All grades of space experienced positive demand and vacancy decreases over the period
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No projects are due to be completed in 2012 or 2014
Vacancy analysis:
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Vacancy decreased from 8.2 percent to 6.7 percent over the 6 months to July 2012
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This is the lowest vacancy since January 2008
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The vacancy decrease was due to net absorption of 21,293sqm
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10,390 sqm of space was added over the period
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All grades of space experienced positive demand and vacancy decreases
Future supply:
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No space is in the pipeline for the second half of 2012 or for 2014
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29,324 sqm of space is planned for completion in 2013
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180,637 sqm of projects are mooted
Key market indicators, North Ryde (aggregate)
| Grade |
Vacancy,
Jul 12 (%) |
Vacancy,
Jan 12 (%) |
Net absorption, 6 months to Jul 12 (sqm) |
Net absorption, 12 months to Jul 12 (sqm) |
| A |
4.0 |
5.4 |
17,721 |
34,383 |
| B |
11.6 |
12.1 |
1,282 |
-3,380 |
| C |
27.6 |
38.8 |
2,290 |
3,153 |
| Total |
6.7 |
8.2 |
21,293 |
34,156 |
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
For full analysis and coverage, visit the dedicated website: www.officemarketreport.com.au
