Sydney CBD records steepest negative office demand in Q3 – Medical Marijuana Program Connection

Net absorption in the area was -25,100sqm during the quarter.

The office market in Sydney’s CBD recorded net absorption of -25,100 sqm in Q3, driven by large occupiers consolidating within the finance and telecommunications sectors.

According to JLL, positive net absorption was recorded in three out of ten Sydney office markets. The largest positive result was recorded in North Sydney with 6,300 sqm of positive absorption, as small tenants (<1,000 sqm) drove demand.

Here’s more from JLL:

The Sydney CBD had the highest negative result (-25,100 sqm), followed by Parramatta (-14,700 sqm). The consolidation of Link Market Services (6,000 sqm) and negative small tenant leasing activity were the key contributors to this result. The vacancy rate for the Sydney CBD increased 0.1 percentage points to 14.5% over the quarter, and is now at the highest recorded rate since 1994.

CBD stock decreases with two withdrawals and no completions

Total stock in the Sydney CBD decreased by 19,800 sqm mainly due to 39-41 York Street (5,795 sqm) and 133 Liverpool Street (15,000 sqm) being withdrawn from the market. Both buildings will be converted to a hotel and a residence, respectively.

JLL recorded no office completions in the Sydney CBD over the quarter. There was one completion in Sydney metro markets, 88 Walker Street in North Sydney (13,602 sqm). There is currently 463,600 sqm of office space under construction across all of Sydney’s office markets. The largest of…