Canberra’s total office stock hits 2.2m sqm

The most recent addition was an 8,000sqm office completed in Q1.

Headline vacancy in Canberra’s office market increased to 7.8% in Q1 2023. In a report, JLL said this was a result of negative 1,300 sqm of net absorption. 

The key driver of this negative quarterly result was driven by Air Services Australia offering 9,500 sqm of sublease space to the market at 25 Constitution Avenue, City. 

Here’s more from JLL:

The Canberra vacancy rate increased by 0.8 pps to 7.8% over the quarter. The vacancy rate increased across prime (5.1% to 6.2%) and secondary (10.7% to 10.8%) grade stock over Q1 2023. 

One office completion totalling 8,000 sqm was recorded over Q1 2023. As a result, total stock in Canberra increased to 2.21 million sqm. One project totalling 35,000 sqm is currently under construction in the market and is expected to be completed by late-2023.

Prime gross effective rents recorded a decrease of 1.0% Q-o-Q to AUD 341 over the quarter. The decrease was driven by an increase in prime incentives from 24.8% to 25.1% in Q1 2023. 

One sales transaction was recorded over the quarter. The sale of 21 Genge Street, City which was sold by Real IS to Charter Hall for AUD 290 million.