Upswing in demand makes Sydney office market attractive
Investors who buy into Sydney’s CBD office market now can expect solid yields going forward with a surge in demand for space in the city forecast for 2016, according to BIS Shrapnel’s latest Sydney Commercial Property 2014 - 2024 report.
NSW capital, BIS Shrapnel analysts said the current environment represented an opportunity for investors to access the market before demand for office space in Sydney heats up again in two years.
“After 2016 the market is set for a strong recovery that is expected to continue into next decade,” BIS Shrapnel said.
“That means the next two years offers the opportunity to position into what will be a strong upswing.”
The report found that competition for tenants in the Sydney CBD market had seen leasing incentives edge higher, causing a modest fall in rents.
BIS Shrapnel analysts said cost cutting measures and staff cuts in the services sector had played a significant role in driving up vacancy rates across in the Sydney market.
AUTHOR
Nicholas O'Donoghue
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