Parramatta Office Market Soars

Amongst major Sydney markets, Parramatta has achieved the lowest office market vacancy rate.

According to the Property Council of Australia’s most recent Office Market Report, Parramatta’s vacancy rate fell from 6.7 to 6.3 per cent over a period of six months ending in January of this year.

The Sydney Morning Herald understands that it is expected that lower interest rates will encourage more sales in 2015 with vendors seeking to meet investor demands.

JLL’s director of leasing for Parramatta, William Tong, said that there were a limited number of leasing transactions recorded last year due to the limited office stock available for lease.

“The education sector dominated demand in 2014, with a number of transactions completed by tertiary education providers including the University of Western Sydney, Empower College and Raffles Design College. Financial and professional services were also active in taking up further A-grade space in the CBD core," Mr Tong said.

JLL’s director of leasing there will be additional office space available due to new developments.

CBRE director of commercial sales and leasing, Stephen Panagiotopoulos, said the vacancy rate will increase this year owing to small and medium sized vacancies expected to enter the market.

“We also note major lease expiries coming up in the medium term that we are closely monitoring, which has the potential to make a significant impact on the market,” Mr Panagiotopoulos said.

“Net supply and net absorption were negative for the year due to over 5,000 sqm of large lower grade fringe stock being withdrawn as result of residential development and building refurbishments.”