- Highest office vacancy rate in seven years
- Increased from 5.6 per cent to 8.6 per cent over six months to January 2021
- CBD office supply increased by 110,00 sqm
Despite the impact of COVID-19, the office market vacancy rate remains ‘comfortable’ says Jane Fitzgerald, the New South Wales Executive Director of The Property Council.
The vacancy rate is currently at the highest level in seven years, having increased from 5.6 per cent to 8.6 per cent over the six months to January 2021.
Additionally, the Sydney CBD has received almost 110,000 sqm of new supply resulting in negative net absorption of -54,671 sqm, which has influenced the vacancy rate.
Strong positive demand for space was also seen outside of Sydney’s CBD with Parramatta, Crows Nest/St Leonards and Wollongong all recording relatively strong demand for office space.
Ms Fitzgerald is optimistic about the outlook for the office market which includes a steady stream of more office space in the pipeline over the next few years.
“Sydney CBD’s office market continues to see a tightly held office market, with vacancy rates remaining comfortably below ten percent,” she says.
“Sydney has close to 280,000 sqm of office space coming online over the next two years, so it is an ideal time to secure prime office space for considered future tenants.”
Alongside greater encouragement for employees and businesses to return to their CBD-based workplaces, Ms Fitzgerald has called for greater infrastructure delivery to increase the global competitiveness of Sydney.
“We support the statements by the Premier and Treasurer of NSW highlighting that the CBDs are the engine room of the NSW economy and continued support from employers to encourage people back to the cities is more important now than ever,” Ms Fitzgerald said.
“Infrastructure delivery needs to remain a priority for government to deliver and must be backed up with the appropriate planning reform to allow for delivery of a globally competitive city.”
