Opportunities for Canberra’s vacant offices
While Canberra’s office market has posted a slight decrease in vacancy over the last six months, the nation’s capital continues to record the second highest vacancy rate in the country.
The Property Council of Australia’s latest Office Market Report finds that vacancy in Canberra decreased marginally from its record high of 15.4 percent to 15.3 percent over the six months to July 2015.
“This decline is due to a slight increase in demand together with withdrawal of office stock from the market,” explains the Property Council’s ACT Executive Director, Catherine Carter.
Canberra’s market recorded 8,803sqm of net absorption and 3,241sqm of withdrawals over the period.
“However, with a vacancy rate second only to Perth, we’ll need a lot more withdrawals from the market to revive our CBD and town centres,” Ms Carter says.
“Empty office buildings have an impact on Canberra’s street level vibrancy – particularly in our CBD. High office vacancy rates should be the concern of all Canberrans wanting a dynamic city centre.”
Detailed analysis of the market finds that vacancy of A Grade office stock decreased from 15.7 per cent to 14.1 per cent. B Grade vacancy also decreased from 11.4 per cent to 10.7 per cent.
In contrast, vacancy of C Grade increased from 17.3 per cent to 18.7 per cent, the highest on record. D Grade vacancy increased from 18.5 per cent to 28.4 per cent.
“This statistic underscores the challenge faced by Canberra – and most particularly within Civic. Secondary office buildings in Canberra’s CBD and older buildings in selected fringe precincts are tired and run down – but they also represent an opportunity.”
“We need to look at what other cities are doing to renew their cities. In Sydney, Melbourne and Brisbane, work is being undertaken to re-life older office buildings through conversions into apartments, hotels and retirement living developments that can be a driver for positive economic, social and environmental outcomes.
“But to achieve this, the ACT Government must work in concert with industry to build a suite of policies, promotional programs and support services that rehabilitate tired areas of our city and help us create exciting new places for Canberrans to live, work and play,” Ms Carter concludes.
On Thursday 10 September, the Property Council, Canberra CBD Limited and Canberra Business Chamber will host a ‘Civic forum’ to unpack the challenges facing Canberra’s CBD – including office market vacancy – and how collective urban leadership can provide solutions. Tickets are available online:
http://www.propertyoz.com.au/act/Article/EventDetail.aspx?p=31&id=4075
Key market indicators for Canberra
Media contact: Catherine Carter| M 0412 330 079| P 02 6248 6602