Keeping the lid on Darwin vacancy rate

Keeping the lid on Darwin vacancy rateThe Top End’s commercial office market needs refurbishment, not extra stock, says the Property Council’s NT director Ruth Palmer as the NT Department of Health looks for new headquarters.The NT Government has recently announced expressions of interest in either constructing a new building of 12,000 sqm, or refurbishing existing office space to consolidate more than 800 Department of Health staff.But with more than 20,000 sqm of office space currently lying empty around Darwin, and the 21 per cent vacancy rate the highest in the country, the decision could spell disaster for the local industry.Palmer (pictured) says there is currently “zero” demand for commercial office space, and the government’s decision could result in a crash “not seen before in the Territory”.”We will almost certainly see vacancy rates exceed a record 30 per cent,” Palmer explains.As the major occupier of leased office accommodation, the Territory Government effectively controls the office market. Over several years, government initiatives have increased the supply of high-grade office accommodation across the Territory.While Deputy Chief Minister Peter Styles has said new headquarters have “the potential to create hundreds of jobs and inject hundreds of millions of dollars into the Darwin economy,” the community is questioning whether the expense delivers the best bang for the government’s buck.”The Government should be focusing its attention on frontline health services before considering a move that would potentially cost Territorians millions of dollars,” Palmer says.”We have an abundance of usable vacant space already in the city,” she says.Palmer says economic stimulus can be achieved by refurbishing existing buildings, with many suitable properties within close proximity of each other. “Upgrading existing stock can deliver a win for everyone by enhancing the amenity within our CBD, supporting our local industry and getting the best value for taxpayer dollars,” Palmer concludes.