Business

Go west for tight office supply

The Property Council of Australia’s latest Office Market Report released shows that Parramatta continues to be one of Australia’s strongest emerging commercial office markets with total vacancy increasing slightly in the six months to July 2018 due to much needed supply additions.

The overall vacancy rate increased from 3.0 per cent to 3.2 per cent due to 25,000sqm of supply additions. Demand was still positive with 12,691 sqm of net absorption recorded. Premium Grade office space vacancy has some wriggle room, rising from zero vacancy to 1 per cent.

“Parramatta continues to grow and develop, and we again see a very tight market in all grades of space– vacancy rates in B and C grade stock dropped again with a big drop in D grade stock,” Property Council NSW Executive Director Jane Fitzgerald said.

“This strong demand will be met with a significant amount of supply due to come online from 2019 onwards with nearly 190,000 sqm due to enter the market.

“Parramatta is benefiting from a strong property market and we must continue to focus on encouraging new business and promoting a strong commercial core for the CBD. Any new planning policies to be introduced by Council must be conducive to new investment.

“If we are to promote long term economic growth and jobs in Parramatta, then we need to boost the amount of space available for big business. Such investment will complement the new transport infrastructure and ensure long term economic growth from the right industries.”

Source: Property Council of Australia

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