Parramatta is set to benefit from the New South Wales government’s decision to look for 45,000 square metres of new office space. Property New South Wales, the government’s property management agency, is calling for expressions of interest to lease office space for more than 4000 staff from 2022.
It is believed the government is after a 10-year lease with two five-year options and is looking for A-grade space with everything in a single building.
Brent Newman, Property NSW chief executive officer said if the search goes well in Parramatta; the government’s footprint could match that of Sydney CBD by 2022.
“The government is on track to occupy around 250,000 square metres of office space in Parramatta by 2022, representing more than 30 per cent of Parramatta’s office market,” Mr Newman said.
“The government’s current Sydney CBD footprint is about 285,000 square metres and that is likely to further decrease by 2022 as more agencies relocate to other metropolitan and regional areas as part of the Decade of Decentralisation policy.”
More than 1800 public service roles have already relocated to western Sydney since 2011.
The state government currently occupies about 147,000 square metres of office in Parramatta. With a further 65,000 square metres that’s yet to be completed will be occupied by the departments of Planning & Environment, Industry and Finance, Services and Innovation, beginning late 2019.
“By sending more roles to western Sydney, the government is bringing jobs closer to people’s homes and reducing congestion on roads and public transport,” Mr Newman said.
“It also reduces the government’s exposure to rising Sydney CBD office rents, with recent Property Council of Australia data showing Parramatta office rents are as much as half of those in the Sydney CBD.”
Obviously if the state government’s plans go ahead in Parramatta, this will help drive local demand in the residential property market in around Parramatta, with 4,000 staff living and working in the area by 2022.