These workers will to the 2400-plus white collar workers who moved into the Parramatta office market within the last 12 months.
As to the future, Parramatta would likely host the large majority of the expected additional 200,000 jobs created in Western Sydney by 2020, according to Colliers’ associate director of research, Kristina Mastrullo.
“As a result of government decentralisation, lack of new supply, and the displacement of tenants due to conversion to other uses, Parramatta’s total vacancy is now one of the lowest nationally,” said Parramatta-based Colliers’ director, office leasing, Alex Brown.
“With the vacancy rate in the first half of 2017 at 4.3 per cent, and A Grade vacancy remaining at zero per cent, tenants have been faced with limited choice.”
Projects expected to be completed, between 2019 and 2021, would bring an additional 149,550 square metres of prime space to the office market, however104,000 square metres is pre-committed.
An example is the relocation of Department of Education staff to its new headquarters of 25,000 square metres of A-grade office space at 105 Phillip Street.
Elsewhere in Parramatta, Dexus has submitted a development application to the City of Parramatta for a 33-storey commercial tower with an estimated cost of over $208 million.
The development, at 130 and 150 George Street, will link George and Phillip streets and provide commercial office accommodation with 48,338 square metres of additional ground floor area, which includes 655 square metres of new retail space.
Developer and investor Coombes Property Group and partner Drivas Property Group propose to develop a new A-grade $227 million office tower at 50 Macquarie Street and 220 Church Street.
The two parties have lodged a development application with council to build the 23-storey 34,277-square-metre building, on a 3685-square-metre site which the pair has owned for over 20 years.
The tower will also include 1534 square metres of ground-floor retail space and include 150 basement car spaces.
On the sales side, property fund manager and investor, CorVal, has listed its six-level office tower at 75 George Street for sale at about $80 million.
CorVal, which bought the underdeveloped 9568-sqyare-metre office building in 2012 for just over $32 million, has obtained approval to add another two floors of 2600 square metres of office space to the building.
