Tenant demand for office space across the North Shore has returned, prompting a fall in vacancy, according to the Property Council of Australia’s latest Office Market Report.
“Demand for office space in North Sydney had already returned, but we are now starting to see signs of life in Crows Nest, St Leonards and Chatswood,” Property Council NSW Executive Director Glenn Byres says.
“The vacancy rate across the North Shore dropped from 14.1 percent to 12.9 percent in the past six months – underpinned by net absorption of 12,284sqm."
“North Sydney again claimed the majority of demand, with net absorption of 8,840sqm in the past six months culling the vacancy rate from 11.8 percent to 10.4 percent."
“Chatswood defied recent trends to fall from 19.2 percent to 18 percent vacancy, with an additional 3,426sqm of demand."
“The market comprising Crows Nest and St Leonards also dipped from 15.4 percent to 14.7 percent."
“The overall demand story was led by the A Grade market, where 10,473sqm of additional demand led to a fall in the vacancy rate from 17.3 percent to 14.9 percent."
“Supply additions across the North Shore totalled just 538sqm, and 6,977sqm of office space was withdrawn.”
Mr Byres says 7,666sqm of additional space is due to enter the market in 2011, followed by 39,930sqm in 2012 and 31,000sqm from 2013 onwards.