Despite solid demand for quality office space, vacancy rates in Parramatta have tracked back up in the past six months, according to the Property Council of Australia’s latest Australian Office Market Report.
Parramatta office vacancies increased from 9.6 percent to 9.8 percent in the six months to January driven by overall negative demand of 1,631 sq m.
However these figures mask sustained demand for the upper grades of space.
“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.
“The kick back up to 9.8 percent is a concern given Parramatta office space vacancies topped 10 percent this time last year.
“The good news is that Parramatta’s A and B Grade office buildings continue to outperform lower grade stock.
“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.
“It shows NSW needs to continue to chart a course to economic recovery and put in place policies that offer the hope of sustained growth and prosperity.”
Mr Byres said 2,967sqm of new space is due to enter the market in 2010, with no further supply scheduled after that.