Parramatta and North Sydney office market primed for increase: Colliers

Parramatta and North Sydney office market primed for increase: Colliers
Parramatta and North Sydney office market primed for increase: Colliers

Supply lines for Parramatta and North Sydney are set to increase in size over the next few years, according to the Colliers International Q1 Metro Office Research and Forecast Report for 2018. 

The light rail is continuing to transform the dynamics of Parramatta, who has seen grade B vacancy slash more than half.

From the six months to January 2018, it dropped from 6.3% to 2.7%. 

Parramatta and North Sydney office market primed for increase: Colliers

Kristina Mastrullo, associate director of research at Colliers International said the upward rents are expected to continue.

“B grade rents are expecting to continue their upward trajectory, with the ability to further increase A grade rents," she noted.

"Sizeable B grade space becoming available is when Property NSW vacates 5,700sqm in 93 George Street, moving to Parramatta Square."

Parramatta and North Sydney office market primed for increase: Colliers

Mastrullo suggested Parramatta will continue with historically low vacancy rates.

“The next two years will see Parramatta continue with historically low vacancy rates, increased rents and decreasing incentives as Lessors look to capitalise.

"2021 will deliver new developments and much-needed opportunities not only for large occupiers but medium sized businesses.”

“Adding to demand is interest from co-working / serviced office groups who are seeking A grade quality as either majority or whole-building occupiers i.e. over 3,000sqm, delivering scale.”

Parramatta and North Sydney office market primed for increase: Colliers

“Demand is particularly strong at the top end of the market, leading to off market transactions occurring on a more frequent basis.”

Mastrullo also cited North Sydney as somewhere businesses are targeting.

“With the Sydney Metro, the Victoria Cross Integrated Station Development and increasing investment in retail and public amenity, requirements for North Sydney office space is likely to strengthen moving forward, encouraging organisations to consider North Sydney as a first option for accommodation.”

“Its an exciting time for North Sydney; the market is going through a transformation and we are seeing high profile corporates choosing North Sydney as a location,” said Louise Rowe, National Director of Office Leasing at Colliers International. 

“The quality of amenity, the affordability of workspaces and the accessibility to the CBD and outer suburbs is giving tenants what they want in a location for their business.” 

Tags: 
Sydney Office Market

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