Net absorption in Canberra’s secondary Civic and non-Civic office markets was higher than Prime net absorption in Q1 2012. This marks the first time in three years net absorption has been higher for secondary space, according to CBRE’s MarketView.
The total vacancy rate in the non-Civic market declined to 10.9 percent at January 2012. CBRE says A Grade space in Civic is forecast to reach a 3.0 percent total vacancy rate by end-2012.
Andrew Stewart, CBRE Canberra managing director, says the market is indicating that it is starting to absorb secondary space that has accumulated.
“The lack of development in the Civic over the next five years is expected to compel tenants to seek Grade A space to the suburban markets,” Stewart says.
The report says sales volumes remained low in Q1 2012. It cites the sale of 50 Marcus Clarke Street to CIMB Trust Capital for $226 million in February 2012 as the only major transaction for the past 12 months.
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