Vacancy rates up in Canberra

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Vacancy rates up in Canberra

The vacancy rate in Canberra increased over the past six months to its highest level since July 2010, according to the Property Council of Australia’s Office Market Report.

Canberra’s office market vacancy rate increased from 12.0 percent reported in July 2013, to 12.9 percent over the six months to January 2014.

Canberra now has the second highest office market vacancy rate of any capital city, behind Brisbane CBD, with all grades of space above 12 percent and above the national CBD benchmarks, with the exception of C Grade at 11.9 percent.

Strong net absorption of 42,484sqm was recorded in Canberra over the period.

Property Council of Australia ACT Executive Director, Catherine Carter, says: “Movement in the Canberra office market and the increase in vacancy rates has come about because of supply additions into the market.

“Civic’s vacancy rate increased from 9.4 percent to 10.6 percent due to -11,757sqm of demand and 2,0sqm of supply. 5,896sqm of space was also withdrawn over the period.

“Vacancy in the Non Civic market increased from 13.1 percent to 13.7 percent. This was due to 73,920sqm of supply additions. 54,241sqm of net absorption was recorded.”

Snapshot – Canberra by Grade:

  • A Grade vacancy was 12.9 percent compared to the Australian CBD vacancy of 9.3 percent
  • B Grade vacancy was 12.7 percent compared to the Australian CBD vacancy of 12.4 percent
  • C Grade vacancy was 11.9 percent compared to the Australian CBD vacancy of 11.1 percent
  • D Grade vacancy was very high at 20.3 percent, significantly higher than the Australian CBD vacancy of 11.3 percent.

Future supply:

  • A total of 54,937sq m of new space is due to enter the market in 2014. Of this, 26 percent has been pre-committed
  • No space is scheduled to come online in 2015
  • 10,745sqm is to enter the market from 2016 onwards and 139,2sqm of stock is mooted

Key market indicators, Canberra & national markets, January 2014

Vacancy,
Jan 14 (%)		 Vacancy,
Jul 13 (%) 		Net absorption,
6 months to
Jan 14 (sq m) 		Net absorption,
12 months to
Jan 14 (sq m)
Canberra 12.9 12.0 42,484 35,297
Civic 10.6 9.4 -11,757 -26,314
Non Civic 13.7 13.1 54,241 61,611
All CBD markets 10.4 10.1 18,854 -107,1
Total Australian office market 10.4 10.1 -28,275 -197,148

 

Key market indicators, by grade, as at January 2014

Grade Vacancy – Canberra
market (%) 		Vacancy – Australian
CBD market (%) 		Vacancy – total Australian office market (%)
A 12.9  9.3 9.0
B  12.7 12.4 12.1
C   11.9 11.1 12.2
D   20.3 11.3 10.7
Total  12.9 10.4 10.4

 

For further information contact:

Catherine Carter, ACT Executive Director, 02 6248 6902 or 0412 330 079