The Property Council has some good news if you’re thinking about renting an office in Canberra over the next few years:
The office vacancy rate in Canberra rose over the six months to January 2013 due to an increase in supply, with all vacancy across all grades of space above 11 percent, according to the latest Property Council of Australia Office Market Report.
Canberra’s office market vacancy is now at 11.9 percent, up from 9.8 percent reported in July 2012. All grades are now in double-digit territory for vacancy, and a significant amount of space is due to come online in 2013.
Canberra continues to have the highest office market vacancy rate of any capital city. However, demand was the highest of all the capitals with 23,328sqm of space taken up over the period. Adelaide CBD was the next closest with only 9,557sqm of demand.
Property Council of Australia ACT Executive Director, Catherine Carter, says: “Movement in the Canberra office market and the increase in vacancy rates have come about because of increased supply.”
“Civic’s vacancy rate increased from 8.8 percent to 12.0 percent, due to supply additions of 20,800 sqm. Over the period, net absorption was -3,621 sqm.”
These stats seem particularly telling:
– 113,770sqm of stock is due to enter the market in 2013. Of this 75 percent has been pre-committed
– The space in 2013 represents 5.0% of the current market size
– No space is in the pipeline for 2014
– 24,500sqm is due to come online from 2015 onwards