Office tower for Barrack Lane, George St Parramatta

Property experts are confident a new office tower in western Sydney will be occupied despite more employees working from home post Covid lockdowns. See the artist impressions.

An office tower would be more than 30 storeys higher than the existing one if approved.

Property experts are confident a new office tower in Parramatta’s CBD will be occupied despite more employees working from home post-Covid lockdowns.

A 40-storey commercial block has been proposed for 1 Barrack Lane and 81-83 George St, where three-storey and four-storey buildings are, respectively.

Historic Perth House and the grand Moreton Bay fig tree, which is almost 200 years old, are perched on the site but a development application submitted to Parramatta Council plans to retain the historic landmarks, including Warders Cottages.

The cottages were constructed between 1842 and 1844 and are now used as an office.

Subject to approval from the Sydney Central City Planning Panel, the three-storey Barrack Lane building, which is just over 30 years old, will be demolished to make way for the tower.

Property Council of Australia’s western Sydney regional director Ross Grove said Parramatta’s occupancy rates were catching up to fill a shell created by the construction boom in the CBD.

A 40-storey building for offices is proposed for Barrack Lane and George St, Parramatta.

Mr Grove said office market report figures from July showed that the number of new tenancies exceeded those that were withdrawing by 7300sq m.

The CBD has 73,000sq m of new office space following the completion of 6-8 Parramatta Square by Walker Corporation and 6 Hassall St by Charter Hall.

A concept design for the tower.

The new buildings have left the office vacancy rate up to 19.3 per cent but Mr Grove is confident it will be filled.

“In a healthy sign for Parramatta’s future, the figures show the amount of leased space continues to grow and ... there is more space available to continue this trajectory,’’ he said.

“Parramatta now has a very large office shell to fill, tenants are excited about the city and its future prospects remain healthy.”

Mr Grove said 10 years ago, the CBD was half the size it is now.

“Going forward, we will need to deliver even more wins to ensure the city continues to evolve to meet the interests of the people who live here,’’ he said.