This article is from the Australian Property Journal archive
DESPITE the office vacancy rate in Canberra increasing to 11.9% from 9.8%, demand for space remains strong, according to the Property Council Office Market Report.
Canberra continues to have the highest office market vacancy rate of any capital city. However, demand was also the highest of all the capitals with 23,328 sqm of space absorbed.
Property Council of Australia ACT executive director Catherine Carter said movement in the market and the increase in vacancy rates was a result of increased supply.
Civic’s vacancy rate increased from 8.8% to 12.0%, due to supply additions of 20,800 sqm. Over the period, net absorption was -3,621 sqm. Vacancy in the non Civic market also increased from 10.2% to 11.9%, due to supply additions of 66,782 sqm. Net absorption was 26,949 sqm and 6,746 of space was withdrawn.
In 2013, 113,770sqm of stock is due to enter the market of which 75% has been pre-committed. The space in 2013 represents 5.0% of the current market size. No space is in the pipeline for 2014 and 24,500 sqm is due to come online from 2015 onwards.
Property Review
