Robust growth in tightly-held Liverpool CBD office market

Robust growth in tightly-held Liverpool CBD office market
Robust growth in tightly-held Liverpool CBD office market

The Liverpool office market is tightly held with limited transactions occurring over the past few years, according to Ray White’s latest research.

“This is driven by a strong local investor and developer market, however, there have been limited prime assets traded in recent times,” according to Ray White Commercial NSW – Western Sydney Managing Director, Peter Vines.

 “As occupancy costs across more traditional office markets like Sydney CBD, Parramatta and North Shore have increased due to reducing vacancies, many small to medium businesses have considered suburban options, and that’s grown demand levels.

 “This has also had a positive effect on the rental environment, growing occupation costs, which has resulted in owners holding their assets.’

Mr Vines said the Liverpool office market consisted of more than 277,000sq m, across 120 buildings.

“Of these, 57 properties are identified as low-grade quasi office/retail premises less than 1,000sq m, those more traditional offerings over 1,000sq m represent 243,000sq m,” he said.

“A-grade stock represents 28.65 per cent of this total market across five larger, modern facilities within the core CBD location,” he concluded.

Ray White head of research, Vanessa Rader, said the total occupancy level of the Liverpool CBD office market was high compared to other non-traditional suburban markets.

 “Currently at 7.89 per cent, this market has enjoyed high occupancy due to significant local demand and growing interest in Liverpool as a CBD location,” Ms Rader said.

Ms Rader said when the rental levels of office product across Western Sydney were considered, the strong values achieved in Parramatta CBD were highlighted, and that showed the issue of affordability for many small and local businesses.

“As the Sydney CBD rents exceed $1,200psqm gross on an average basis, many larger occupiers have sought the affordable, yet quality, modern offerings in the Parramatta CBD, resulting in strong increases over the past five years,” she said.

Extensive investment in public transport and infrastructure over the last decade has allowed the Western-Sydney region to enjoy continuous economic and population growth.

 

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Office Liverpool

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