Operating Your Business

Vacancy data

Parramatta Office Market – latest data as of February 2011

  • Demand for premium office space is strong
  • A-grade vacancies have dropped from 2.9% to 1.8% (2,326sqm leased in the last 6 months, equal to approximately 155 jobs)
  • B-grade vacancies have dropped significantly from 12.45% to 7% (8,458sqm has been leased in the last 6 months, equal to approximately 500+ jobs)
  • Demand for C and D-grade space is weak
  • C-grade vacancies grew to 18.3% - highest since 1995
  • D-grade vacancies grew to 15.7% - highest since 1994

The persistent vacancies in C and D-grade stock are a reflection of the poor quality and age of buildings that are becoming increasingly redundant in a market with a strong preference for premium accommodation.

Difficulty finding tenants over the long term will cause owners of these assets to consider refurbishment / redevelopment.

Seeing some secondary sites turn over is in Parramatta’s interest with 43% of the current built form being second-rate stock that does not maximise the available floor space (low jobs potential).

Comparison of the Parramatta Office Market with other commercial centres is provided over page. Sydney has re-bounded well and North Ryde is healthy. Parramatta’s performance is comparable to North Sydney’s – transitioning out of downturn, lagging Sydney.

Market Vacancy rate,
Jan-11 (%)
Net Supply
6 month to
Jan-11 (sq m)
Net absorption
6 month to
Jan-11 (sq m)
Sydney CBD 8.2 50,933 62,417
North Sydney 10.4 -33,377 8,840
North Ryde 10.3 12,700 19,169
Parramatta 9.6 0 8,279
Crows Nest / St Leonards 14.7 -3,062 18
Chatswood 18.0 0 3,426

There will be no new space entering the market in 2011, but August 2012 will see 25,050sqm delivered via the Eclipse at 60 Station Street (pictured).

This is an opportune time for Council to begin building momentum in the market by engaging with potential new business tenants and working with investors to encourage supply. The forum on 8 March is an opportunity to do so.

LiveZilla Live Help