Positive signs for Sydney's commercial property market
Announcement posted by Watpac Limited 11 Jun 2010
A low vacancy rate coupled with higher demand for A-grade office space has translated into positive forecasts for the Sydney commercial property market.
In their Autumn 2010 Market Indicators Report for Sydney metropolitan office space, Colliers International reported a decline in vacancy rates in smaller office markets, such as the Sydney Olympic Park/Homebush Bay, Rhodes, South Sydney, and CBD Fringe areas.
Colliers attributed the decline in vacancy rates to a lack of new supply of quality office space, and increasing tenant demand.
According to the report, the Sydney Olympic Park/Homebush Bay market has the tightest vacancy rate at present, at just 1.7 per cent of available A-grade stock.
Indicative of this high demand for quality space is the recently opened 8 Australia Avenue development in Sydney Olympic Park (pictured).
The Watpac Property development was fully leased prior to the completion of construction in late 2009, with tenants including Fujitsu, Sydney Olympic Park Authority, and Watpac Construction.
Greg Fawcett, Fujitsu General Manager Facilities, said the 8 Australia Avenue development had a lot to offer the company.
“We selected the facility because it offers A-Grade office space, it is a central location for our staff, and because of the pleasant working environment,” Mr Fawcett said.
Martin Monro, Watpac Construction National General Manager, said the Company decided to move their Construction business to the 8 Australia Avenue development for similar reasons.
“Compared to our previous location at Baulkham Hills, Sydney Olympic Park offers a much more central location for our staff, our clients, and our business partners,” Mr Monro said.
“The Park also enjoys excellent public transport options, and a range of recreational amenities our staff can utilise.”
Mr Monro also said that the Company’s impressive growth in recent times led to Watpac seeking larger, high-quality office space in Sydney.
The growth of companies throughout Sydney, following an improving national economic climate, has led to business planning for future growth, and ultimately has led to an increase in inquiries for office space within Sydney, according to the Colliers report.
Note to editors:
Watpac is an ASX-listed company specialising in construction, civil engineering and mining, specialty services (including refurbishments), and property development. We have offices in Brisbane, Townsville, Sydney, Melbourne, Adelaide, and Perth. More information can be found at www.watpac.com.au.