Article originally published by commercialrealestate.com.au on the 27th February 2019.
Parramatta has become Australia’s tightest office market, ahead of other big city centres and strong fringe office suburbs, a new report shows.
Despite major project completions and the re-entry of refurbished buildings, office space availability in the Western Sydney suburb shrunk to 21,877 square metres in the six months to January 2019, according to Ray White’s Between the Lines – Parramatta CBD Office Market Overview. This was mainly due to the withdrawal of stock, especially among secondary assets, as well as rising demand for office accommodation outside of the Sydney CBD.
“Thanks to new public and private investment, Parramatta is also being viewed as a primary locale option, rather than just a location for satellite offices,” Mr Badenhorst said.
CBRE’s regional director of office leasing Paul Badenhorst believes that large corporate tenants are increasingly looking at markets outside of the city centre – including Parramatta – due to affordability and better new development options, as well as worsening stock availability in the Sydney CBD market.
Property Council figures indicate that the Parramatta market will see new office space come in steadily, with 64,000 square metres set to be delivered in 2019, followed by more than 97,000 square metres in 2020 and almost 74,000 square metres expected from 2021 onwards.