The push by state capitals and regional centres to relocate government agencies outside of Canberra has been comprehensively kyboshed by a new report that reveals that Canberra is the least expensive place for the Federal Government to place staff.
The research, undertaken by JLL for the Property Council of Australia, found that office space in Sydney CBD was 2.3 times that of Canberra, similarly Melbourne was 1.4 times higher.
“For all the huffing and puffing by politicians about the benefits of moving departments from Canberra, this report shows compelling financial and human resource reasons for more government agencies locating in the capital” said Property Council Acting ACT Executive Director Belinda Ngo.
“Canberra is the clear winner for organisations with a high number of employees and larger office space requirements,” Ms Ngo said.
“The report makes a compelling case about the value-for-money the Commonwealth receives across its tenancies compared to other capital cities.
“As well as competitive rents, the report identified that the Commonwealth benefits from scale as it is able to take a strategic approach to occupancy requirements and tap the benefits of clustering.
“The report also highlights the stability of the Canberra office market which has seen low rental volatility over the past 10 years.
“Low volatility in rents allows organisations to more accurately forecast their operating costs and profit projections.”
The research also investigated the average age of office stock across CBD office markets.
“Canberra ranked as having the highest proportion of modern stock – defined as assets less than 10 years old – compared to the Sydney CBD at 17% of office stock,” Ms Ngo said.
“Newer office buildings have been designed to achieve high sustainability credentials, while the design and shape of the floorplate assists organisations being able to use office space more efficiently.”
Media contact: Belinda Ngo |M 0400 356 140 |E [email protected]