Restarting Darwin CBD s failing heart

Restarting Darwin CBD’s failing heartAs Darwin’s office vacancy rate climbs above 22 per cent, the NT Government’s decision to consolidate the Department of Health could make a bad market worse, says the Property Council’s, Ruth Palmer.While the tender for 10,000 sqm of new office space would bring an additional 200 employees into Darwin’s CBD, the NT Government must consider the impact a new building would have on an already-fragile office market, says the Property Council’s executive director in the Top End.”Darwin currently has more than 48,000 sqm of vacant office space across the CBD. All grades of space in Darwin have vacancies above 15 percent.”The latest Australian Office Market Report found Darwin’s vacancy rate had increased by 1.8 per cent over the 12 months to January to an unprecedented 22.5 per cent. “The Darwin CBD and Perth CBD office markets have the dubious distinction of the highest vacancy rates across all capital cities,” Palmer says.But while Darwin’s city centre is in “desperate” need of additional employment and economic activity, restarting the city’s heart is not just a matter of constructing a new office building.”The lack of activity is largely due to less people working in our CBD, coupled with the oversupply of commercial and retail space,” Palmer explains.”Simply adding more retail and office accommodation will not improve the retail and commercial property market in Darwin CBD.”The effects of the government’s decision on the office market remain unclear, Palmer adds.”The Northern Territory Government is the major occupier of commercial office space in the Top End. Depending on how the government proceeds, the impact could be major or minimal.”Refurbishing existing buildings will have a positive economic impact while improving vacancy rates in Darwin’s CBD.”We also want to see the NT Government commit to relocate non-Darwin government tenancies back into the city centre as they expire.”Last week, chief minister Michael Gunner promised a 2-strong crowd that his government would embark on a massive capital works program to revitalise Darwin’s CBD. Among the projects in the pipeline is the redevelopment of State Square, which Gunner says would create “the kind of elegant space found in the great capitals of the world”.Palmer welcomes Gunner’s comments, saying that the State Square project has been championed by the Property Council for many years.The chief minister also flagged future development of Myilly Point as a cultural precinct, the demolition of the Chan Building, relocation of the bus terminal and revitalisation of the Supreme Court car park which currently covers “what could be one of our most beautiful open-spaced areas with heat-generating and ugly bitumen”.Gunner told the audience that his government’s infrastructure investment would be focused on projects that can “leverage the private sector economy into action”.Palmer says the new plans will give the property industry a much-needed shot in the arm.”It is great to see a 10-year Capital Works Program underway for the CBD. This will encourage people to want to live, work and play here. We need a well performing city centre and this is a positive step in the right direction.”