The Sydney CBD office market continues to perform well above the national average with vacancy rates decreasing over the past six months, according to the Property Council of Australia’s latest Office Market Report.
“Sydney’s office market continues to have the lowest vacancy rate and the strongest demand of all capital cities,” NSW Executive Director Jane Fitzgerald said today.
“Sydney’s CBD saw positive demand at the top end of the market – in the Premium Grade segment – with a significant amount of space coming online in the next six months,” Ms Fitzgerald said.
The vacancy rate across the market dropped slightly to 5.6 per cent in the six months to July 2016 down from 6.3 per cent in January.
“While the vacancy rate for premium grade assets increased from 8.1 per cent to 11.3 per cent, reflecting 126,474sqm of new supply, the A grade vacancy rate fell from 5.4 per cent to 4.0 per cent and B grade fell more sharply from 6.8 per cent to 3.5 per cent,” Ms Fitzgerald said.
“Premium grade assets still accounted for the bulk of new demand with 79,170sqm of net absorption”.
“Withdrawals across the market over the past six months totalled 110,731sqm while 126,474sqm of new stock was added.”
Ms Fitzgerald said 140,191sqm of new stock was due to enter the market in the second half of 2016.
“The NSW economy continues to be strong with five of the top 10 office markets in NSW.”
Key market indicators, Sydney CBD (aggregate)
|
Grade |
Vacancy, Jul 16 (%) |
Vacancy, Jan 16 (%) |
Net absorption, 6 months to Jul 16 (sq m) |
Net absorption, 12 months to Jul 16 (sq m) |
|
Premium |
11.3 |
8.1 |
79,170 |
179,309 |
|
A |
4.0 |
5.4 |
-26,008 |
12,889 |
|
B |
3.5 |
6.8 |
4,227 |
-43,367 |
|
C |
6.0 |
5.3 |
-4,788 |
-2,063 |
|
D |
3.7 |
4.2 |
-2,151 |
477 |
|
Total |
5.6 |
6.3 |
50,500 |
147,245 |
