COMMERCIAL MARKET HOLDS UP WELL!

web1The release of Property Council figures for commercial office space in Newcastle shows that A-Grade office space has a vacancy rate of only 5%.

Alan Tonks of Raine & Horne commercial said that this is very low compared to other Australian city markets.  “Because there has been little new development in the city centre over the last 5 years the vacancy rate remains low” he said.

“Many older inner city buildings which are not conducive to modern day office needs are being converted to residential use thus lowering the total available stock.  As there has been no major projects built in recent years top quality office space is still sought after.”

“Keith Stronach’s Watt Street Commercial refurbishment project has gone well and is almost totally committed indicating the strength of the market.  There is no doubt that the downturn in mining infrastructure and engineering has taken its toll with some space being sublet or returned to the market.  However, when a good enquiry arises for say 1,000m2 plus there is very limited choice available.  We definitely need a new project to get underway to satisfy future demand” he said.

Alan Tonks
Commercial/Industrial Specialist

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