Skip to content Skip to main navigation

Business

The voice of business in Canberra

Canberra office vacancies lead the nation

By johnboy 7 February 2013 9

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:

    Future supply:

    — 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

    — There is 102,250sqm of mooted projects.

What’s Your opinion?


Please login to post your comments, or connect with
9 Responses to
Canberra office vacancies lead the nation
Filter
Showing only Website comments
Order
Newest to Oldest
Oldest to Newst
Ben_Dover 2:21 pm 07 Feb 13

Not houses, we could convert them to appartments though!

Oh, wait….

thebrownstreak69 1:24 pm 07 Feb 13

Henry82 said :

Convert the offices into houses. 2 birds with one stone

I’ve never liked the idea of killing birds. What did they ever do to you?

rosscoact 1:15 pm 07 Feb 13

futto said :

The ACT government is moving ahead with the pork barrelling by building new office spaces in Gungahlin.

http://the-riotact.com/shared-services-fingered-as-the-gungahlin-penal-battalion/63220

I wonder how they can justify this to the taxpayers considering how much vacant office space is available in Canberra.

The cost to the taxpayer will be pretty much the same no matter if they rent existing or own and build or PPP. Actually own and build will probably be less.

It is not really up to the ACT Govt to make property speculation a safer occupation.

Gungahlin Al 1:13 pm 07 Feb 13

3 years ago, the PCA were bleating that Canberra had nation-leading lowest office vacancies, and this was all ACTPLA’s fault because they weren’t approving all the PCA’s mate’s DAs and had the temerity to require the developers to actually comply with the Territory Plan…
I have no sympathy for them, given their active role in creating the very situation they are now crying about.

This is just:
1/ a small market heavily swaying by relatively small changes to either supply or demand
2/ the natural outcome of tenants needing to comply with the government’s greenhouse targets, so wanting to get out of poor quality 30-40 year old buildings with extremely poor energy and comfort performance, inadequate security, etc and owners doing nothing to improve them
3/ the ACT Government releasing far too much land in Civic, Acton and the Parliamentary Triangle to market, after pressure from the PCA and to make their budgets balance – the classic selling all your silver solution.

I’m with Henry82 – they are not going to be cost-effective to upgrade to A-grade office accommodation, but conversion to quality inner city accommodation would be quite appropriate, and inject more life into the centres during times that currently see them deserted.

dungfungus 12:29 pm 07 Feb 13

Henry82 said :

Convert the offices into houses. 2 birds with one stone

Good comment. The old Westpac regional offices in Civic were successfully converted to the Waldorf Apartments. There are some tired old office buildings in professional precincts that should be replaced with apartments.

watto23 11:15 am 07 Feb 13

However higher vacancy rates lead to cheaper rents, which many businesses would love.

Henry82 11:09 am 07 Feb 13

Convert the offices into houses. 2 birds with one stone

futto 11:01 am 07 Feb 13

The ACT government is moving ahead with the pork barrelling by building new office spaces in Gungahlin.

http://the-riotact.com/shared-services-fingered-as-the-gungahlin-penal-battalion/63220

I wonder how they can justify this to the taxpayers considering how much vacant office space is available in Canberra.

Related Articles

CBR Tweets

Sign up to our newsletter

Top
Copyright © 2018 Region Group Pty Ltd. All rights reserved.
the-riotact.com | aboutregional.com.au | b2bmagazine.com.au | thisiscanberra.com

Search across the site