Office vacancy in Sydney's Chatswood expected to increase: Colliers
Office vacancy in Sydney's Chatswood is expected to increase throughout 2017 as a number of whole floor opportunities enter the market, according to Colliers International’s latest Metro Office report.
It noted Leighton vacated 799 Pacific Highway and Lendlease will be relocating to Barangaroo from The Zenith.
Vacancy has already increased from 6.6 per cent to 7.7 per cent in the six months to January 2017 with negative net absorption of -3,310 sqm.
"As a result we expect incentives to remain stable throughout 2017,” the report stated.
A Grade property rents have increased slightly over the last six months, Colliers says.
“In the six months to March 2017 average A Grade net face rents increased marginally at 1.5 per cent settling at $510 per sqm, while incentives increased from 24 per cent to 25 per cent as a result of increased vacancy.
"We expect to see owners splitting floors and offering speculative fit-outs to drive demand in the sub 500 sqm range as heightened competition remains for whole floor space. The Zenith is already seeing success with this strategy,” the report said.
A 86 sqm office at 47 Neridah Street, Chatswood (above) has been listed for $825,000.
Similarly, a boutique freehold office at 754 Pacific Highway, Chatswood (below) has been listed for sale.
A 247 sqm office at 2/9 Railway Street, Chatswood (below) was recently sold in April.
Similarly a 118 sqm office at Suite 603, 7 Help Street, Chatswood was recently sold in April.
