Property Council of Australia, 6 August 2009

The Parramatta CBD has had the biggest growth in demand for office space in the country, driving vacancy rates back into single digits over the six months to July 2009, according to the Property Council of Australia’s latest Australian Office Market Report, which monitors more than 22.5 million sq metres of office space across the country.

Driven by strong demand, Parramatta office vacancies decreased from 10.1 per cent to 9.6 per cent in the six months to July 2009, which makes it the only NSW office market to experience a vacancy decrease.

“Parramatta seems to have shrugged off the global financial crisis and the last six months has seen it outperform every other office market in the country in terms of demand for space”, said NSW executive director Ken Morrison.

“The Parramatta market experienced demand of 23,660 sq m, which places it ahead of its top five rivals of Southbank (20,011 sq m), North Ryde (5,071 sq m), the Brisbane CBD (3,103 sq m), Adelaide Frame (1,763 sq m) and East Melbourne (1,341 sq m).”

“Parramatta’s A-Grade market remains tight as a drum, with the vacancy rate decreasing from 3.1 percent to 2.4 percent, the lowest on record for this segment of the market in Parramatta.”

“This is largely due to the relocation of Sydney Water’s headquarters into the Parramatta CBD.”

“Parramatta’s current vacancy rate also compares reasonably well to the 10-year average of 8.0 per cent, the 15-year average of 8.3 percent, and the 15-year peak of 13.6 percent, which occurred in January 1995.”

Mr Morrison said the supply of space entering the market in the short to medium term is extremely low.

“Overall, this result would be good news for Parramatta City Council’s plans for the renewal of Civic Place”.

Property Council of Australia (6 August 2009)