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News release

Sydney

Tenants take a ticket to Ryde as local office parks make a comeback

Macquarie Park vacancy rate has decreased 5.6 percentage points to 6.5% in the last year, the lowest vacancy rate since Q1/2008.


SYDNEY, 29 November 2011 – Office Parks in Sydney’s Macquarie Park Corridor, North Ryde are becoming increasingly popular with mid-sized tenants attracted by the affordable rents, large floor plates, abundant parking, public transport and amenities.

Recent research by Jones Lang LaSalle shows that the vacancy rate in Macquarie Park has decreased 5.6 percentage points to 6.5% in the last year, representing the lowest vacancy rate recorded in over three years.

Statistics also show that after recording negative net absorption of 1,100 square metres in Q2/2011, Macquarie Park has bounced back with positive net absorption of 6,500 square metres in Q3/2011.

So far this year Jones Lang LaSalle has negotiated seven major leases in Macquarie Park totalling 27,000sqm, compared to three major leases in 2010 totalling 9,000sqm.

Last month, Denys Bizinger, Director, Office Leasing & Business Parks at Jones Lang LaSalle negotiated two major leasing transactions in the Riverside Corporate Park on behalf of Mirvac.

Liquor Marketing Group Ltd has leased 1,040 sqm at 10A Julius Avenue, while Rexel Group Australia Pty Ltd has taken up 2,217 sqm at 12 Julius Avenue.

In commenting on the deals, Mr Bizinger said, "Office Parks offer tenants many benefits that they would not get elsewhere. Rents in the Macquarie Park market are much lower than those in the Sydney and Northern Sydney CBD’s which is attractive for businesses looking to reduce their occupancy costs."

While the affordable rents are attractive to tenants, the modern design of the buildings is also a key factor in the appeal of office parks, according to Mr Bizinger.

"Suburban Office Parks usually comprise buildings with large floor plates, meaning that tenants can occupy fewer floors, allowing for greater workplace efficiency. With many businesses now looking at making their workplaces more open and collaborative, this is an increasingly important factor.

"The stock is generally quite young with high NABERS Ratings and low outgoings. With three railway stations fully integrated into the Northern Line access to Macquarie Regional Shopping Centre or Chatswood’s retail hub is only one stop away. Parking for visitors and staff is plentiful and inexpensive with no government levies.

"The trend for the Macquarie Park market is a continued decease in vacancies, an increase in effective rents driven by a decrease in the level of incentives, and the potential for developers to push the button to speculatively develop DA approved sites. There are five or six projects, any of which could commence construction in 2012, so as vacancy continues to fall, the race will be on to see who can be the first cab off the rank next year." said Mr Bizinger