Walker Corporation has submitted a proposal for a change of use on 8 Parramatta Square from residential to commercial, driven by an increased number of tenants looking to secure A-Grade commercial office space in the undersupplied metropolitan Sydney office market.
According to the latest Office Market Report published by Property Council Australia, A-Grade commercial vacancy in Parramatta is presently at 0%, with a growing demand for commercial space continuing to push down vacancy rates to a record low, resulting in many tenants having to settle for B and C Grade office space.
Lang Walker AO, Executive Chairman, at Walker, said, “We have continued to receive strong interest for commercial office space at Parramatta Square and the recent Property Council Office Market Report is a clear indication of the growing need for more premium space in Parramatta CBD to meet this existing demand.”
The development would provide large, campus-style floor plates of between 2,500 and 3,000 square metres, a rare offering in the broader Sydney market and unavailable anywhere else in the Parramatta CBD.
“We commend the council for its forward thinking in terms of the sensible development of this important cityprecinct and believe that Parramatta Square will be the centrepiece for Sydney’s second CBD over the next fiveyears,” Mr Walker said.
An economic study commissioned by Council found the additional commercial space would create an extra 10,000 jobs, resulting in an estimated $31.6 million in retail expenditure in the Parramatta CBD – $19.2 million more every year than would be generated by residents and workers under the current residential scheme for 8 Parramatta Square. The report said the extra $19.2 million could also result in a substantial number of additional retail jobs.
The $2.4 billion Parramatta Square urban renewal precinct has already seen significant interest from the financial, insurance, telco and accounting sectors and Council sees an opportunity to further cement Parramatta’s status as Sydney’s Central City by filling an obvious demand for high-quality commercial spaces in the CBD.
Tenants on Parramatta Square already include PWC and Western Sydney University in a state-of-the-art vertical campus, and Sydney Water in the striking 2 Parramatta Square Tower on the Eastern corner of the Square. National Australia Bank, the NSW Department of Planning and Environment, the NSW Office of Environment and Heritage, the Environment Protection Authority and NSW Department of Finance, Services and Innovation have also committed to leasing 3 and 4 Parramatta Square.