Office vacancies low in NSW

Office-market-vacancies-are-low-in-Sydney-and-Newcastle_157_6003565_0_14099119_300Office vacancies seem a benign way to measure economic growth, but results from Property Council of Australia’s Office Market Report show that New South Wales is on the up for commercial office space demand. The survey reveals that while Sydney is leading the way amongst Australia’s capital cities for the level of vacancy, Newcastle CBD has one of the lowest vacancy rates in Australia.

The report indicates large differences in economic performance between cities, with strong demand for offices in Sydney and Melbourne, while the soaring economic highs of the mining boom have eased in Brisbane and Perth, with each of these cites now showing the highest office market vacancy rates in the country, along with Canberra. Vacancy levels in the office market reached 15.6 percent, 14.8 per cent and 15.4 per cent respectively.

In similarly disappointing news, Adelaide, Hobart and Darwin recorded limited change. Property Council of Australia Chief Executive Ken Morrison said the overwhelming picture emerging from the office market is that the economy has become more fragmented.

“In the Sydney and Melbourne CBDs, businesses are expanding to take up more space, reflecting the stronger economic growth in those states,” he said.

New South Wales remains a stalwart for economic growth. Yet another city offering potential for commercial property investors, with Newcastle riding the wave of strong office demand alongside Sydney, The report reveals this city now has one of the lowest vacancy rates in the country – even surpassing Sydney.

“The CBD has seen around 11,000 square metres of office space come online over the past 12¬†months and well over 90 per cent of that has already been taken up,” said Andrew Fletcher, NSW Regional Director for the Hunter region.

“A Grade office space is now at an absolute premium in the city and vacancy rates for this category have crashed to around 2.7 per cent.”

NSW is clearly flexing its muscles as an economic powerhouse, with low vacancy rates and strong demand providing a level of certainty on investment. If you are interested in taking advantage of these conditions to maximise your commercial property portfolio, speak to a local real estate agent.

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