Simon Fenn, Managing Director of NSW at Savills, says the Parramatta office market is one of the tightest in the country with prime grade vacancy currently at zero and total vacancy at only 4.3%. The lack of good quality office space available for lease is driving rental growth in the market.
Simon added: “The economic rents associated with the new office projects are setting high rental benchmarks.
“Existing office owners in the area are benefiting, as rents for existing office stock are naturally dragged up or reflect attractive value compared to new builds.”
Sydney’s west is forecast to facilitate the majority of population and employment growth. The region’s population is predicted to increase by 52% between 2011 and 2036 with employment predicted to grow by 55% over the same period.
Savills added that Parramatta is witnessing a level of development that is delivering generational change which is solidifying it as Sydney’s second CBD.
The public sector is also driving change through its investment in infrastructure in Western Sydney, with projects such as the Parramatta Light Rail, West Connex, Western Sydney Airport and Sydney Metro all underway.