New reports have revealed that Sydney office vacancy rates have dropped more than any other Australian city.
It has been attributed to Australia’s strong economy and the influx of Asian investors.
The Property Council’s newest Office Market Report has shown that the vacancy rate dropped a whole percentage in the six months leading up to January.
The drop, from 8.4 to 7.4 per cent, is on the back of strong demand for office space in Sydney in Melbourne.
Current sublease space available in Sydney stands at 37,858 square metres compared to the 72,000 square metres available in 2013, its lowest since April 2011.
Savills National Director of Office Leasing Rob Dickins told The Sydney Morning Herald he was not surprised by the drop.
"In the 12 months to December 2014 Savills recorded more than 700 inquiries in the Sydney market totalling more than 1.3 million square metres," he said.
"There is still exceptionally high levels of activity within the market, with at least 80,000-100,000 square metres of unsatisfied broad business sector inquiry in the market from notable companies, such as ING (8000 square metres), Suncorp (25,000 square metres), Caltex (6000 square metres), Atlassian (12,000 square metres), all looking for space."
Property Council of Australia’s New South Wales Executive Director Glenn Byres told The Sydney Morning Herald it was the strongest it has been in Sydney for four years.
"Sydney's office market now has the lowest vacancy rate and enjoyed the strongest demand of all capital cities," he said.
"Sydney's CBD saw positive demand at the top end of the market, and declining vacancy rates across all grades."
CBRE’s Regional Director Office Services Andrew Tracey said the availability of sublease space has also dropped in Melbourne and Brisbane,“Sublease space remains stubbornly present in all markets and will be an ongoing feature until the economy improves,” he said.
