Commercial market strong as demand for Sydney office space burgeons

The office market in Sydney is showing no signs of slowing down with big business driving an increased demand for workspaces in the New South Wales capital.

According to Colliers International, Sydney recorded a 32 per cent increase for 3000sqm workspaces from the fourth quarter of 2017 to the first quarter of 2018, representing a 63 per cent increase on Q1 2017.

Cameron Williams, Colliers International national director of office leasing, says the demand is driven by businesses needing to plan their workspaces years in advance.

"With the next supply cycle only three years out, we're seeing larger tenants enter the market and plan ahead to make themselves available for the projects that will become available," says Williams.

"Essentially, the supply cycle is stimulating demand as these tenants are being actively pursued."

Williams says that the market a year ago was still recovering from the displacement of small tenants. Now that this process has stabilised, Colliers is seeing enquiries from smaller tenants being driven by both lease expiries and growth. Read more

David Simmons - Business News Australia - 13 Apr 2018