Sydney Cbd Office Market Overview March 2017
RESEARCH SYDNEY CBD OFFICE MARKET OVERVIEW MARCH 2017 HIGHLIGHTS A record 239,057m² of existing Low vacancy rates have resulted The overall vacancy rate in the office stock in the Sydney CBD has in the Sydney CBD’s prime and Sydney CBD office market is been withdrawn for conversion to secondary gross effective rents forecast to decline to circa 5.0% alternative uses or redevelopment in increasing by 16.3% and 21.0% and 3.5% over the next 12 and 24 the year to January 2017. respectively over the past year. months respectively. KEY FINDINGS SUPPLY & DEVELOPMENT Gross office supply in the Sydney CBD office market A record 239,057m² of existing will be significantly constrained over the next two years, office stock in the CBD market, largely secondary grade, has exacerbated by an increase in stock withdrawal. been removed in the year to Withdrawal of office space for conversion stemming from the completion of the final January 2017. to alternative uses or redevelopment two Barangaroo towers, T3 and T1 Absorption of prime office space continues to be a major theme in the adding a combined NLA of 181,000m² measured 100,166m² over the Sydney CBD with 128,326m² of existing (circa 70% occupied). New additions over 2016 calendar year, almost stock taken offline over the six months to the past six months also included 333 double the 10-year annual average January 2017. Of this amount, 61,609m² George Street (12,500m²—fully leased) of 59,490m². was withdrawn permanently. On an and One Wharf Lane at 161 Sussex annual basis, a record 239,057m² of Street (6,700m²—56% committed).
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