The office vacancy rate in Canberra decreased over the six months to July 2012 to its lowest level since January 2010, according to the latest Property Council of Australia Office Market Report.
Canberra’s office market vacancy is now at 9.8 percent, down from 10.3 percent reported in January 2012. However, with the exception of B Grade, all grades remain in double-digit territory for vacancy, and a significant amount of space is due to come online in the remainder of 2012.
Canberra continues to have the highest office market vacancy rate of any capital city. Sydney CBD is the next closest in vacancy, at 8.2 percent. The total Australian CBD market vacancy is 7.3 percent.
Property Council of Australia ACT Executive Director, Catherine Carter, says: “Movement in the Canberra office market and the decrease in vacancy rates have come about because of increased demand.”
“Civic’s vacancy rate increased from 8.6 percent to 8.8 percent, due to supply additions of 15,398 sqm. Over the period, net absorption was 13,308 sqm.”
“Vacancy in the Non Civic market decreased from 11.0 percent to 10.2 percent over the period. This was due to withdrawals of 13,944sqm. Net absorption was -242 sqm.”
Vacancy analysis
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A Grade: Vacancy decreased from 11.7 percent to 10.8 percent due to net absorption of 8654 sqm
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B Grade: Vacancy decreased from 5.1 percent to 5.0 percent, the lowest since January 2009, due to withdrawals totaling 10,948sqm and net absorption of 4989 sqm
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C Grade: Vacancy decreased from 10.7 percent to 10.3 percent
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D Grade: Vacancy increased from 24.6 percent to 25.1 percent due to net absorption of -899 sqm.
Future supply:
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140,704 sqm of stock is due to enter the market in the second half of 2012. Of this, 54 percent has been pre-committed
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The space in the remainder of 2012 represents 6.4 percent of the current market size
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In 2013 an additional 62,221 sqm is due to come online, with 51 percent pre-commitment
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In 2014+ a further 24,500sqm is due to enter the market, and a total of 144,750 sqm is mooted.
Key market indicators, Canberra (aggregate)
| Grade |
Vacancy,
Jul 12 (%) |
Vacancy,
Jan 12 (%) |
Net absorption, 6 months to Jul 12 (sqm) |
Net absorption, 12 months to Jul 12 (sqm) |
| A |
10.8 |
11.7 |
8564 |
21,381 |
| B |
5.0 |
5.1 |
4989 |
14,166 |
| C |
10.3 |
10.7 |
412 |
15,531 |
| D |
25.1 |
24.6 |
-899 |
-1827 |
| Total |
9.8 |
10.3 |
13,066 |
49,251 |
Key market indicators, Canberra (by locale)
| Locale |
Vacancy,
Jul 12 (%) |
Vacancy,
Jan 12 (%) |
Net absorption, 6 months to
Jul 12 (sqm) |
Net absorption, 12 months to Jul 12 (sqm) |
| Civic |
8.8 |
8.6 |
13,308 |
26,350 |
| Non Civic |
10.2 |
11.0 |
-242 |
22,901 |
For more information, contact:
Catherine Carter,
ACT Executive Director
02 6248 6902, 0412 330 079
For full analysis and coverage, visit the dedicated website: www.officemarketreport.com.au
