Darwin’s office vacancy highest in Australia
The Property Council of Australia has compiled it’s annual, comprehensive inventory of all useable office space in over 25 office markets across Australia.
The Office Market Report released today shows Darwin’s vacancy rate has increased in the year to January 2017 by 1.8 per cent to an unprecedented 22.5 per cent.
The Property Council of Australia’s Northern Territory Executive Director Ruth Palmer said that Darwin City had recorded for the second year the lowest demand growth in the nation.
“The Darwin CBD and Perth CBD Office Markets tied at the highest vacancy rates across all capital cities.
“All grades of space in Darwin recorded vacancies above 15 percent.
“The report shows that that majority of negative demand was concentrated in the A grade segment of office accommodation, demand is projected to remain flat or marginally negative across all grades.
“The report did not take into account the Northern Territory Government's announcement of their intention to consolidate Health staff in the Darwin CBD.
“The effects of this decision on the office market are unclear.
“Depending on how the government proceeds with the consolidation of Health staff, the impact could be major or minimal.
“There is no doubt that the consolidation of the Health Department must occur in the Darwin CBD.
“The Darwin CBD is the primary employment hub for the Top End and is in desperate need of additional employment and economic activity.
“The future prospects of the Darwin CBD office market will largely depend upon how the government consolidates Health staff and its commitment to improving hard and soft infrastructure and amenities in the Darwin CBD.
“The NTG is the major occupier of commercial office space in the Northern Territory.
“We believe there are a number of options and projects that the NTG can do to reinvigorate the Capital City, that will not impact adversely on the office market.
“These other options focus more on improving amenities in the City that aim to bolster construction, retail, hospitality, tourism, hotels and the ever-growing number of residents that call the city centre home.
“The Gunner Government has made it clear it wants to be an open and consultative government.
“We are confident that with sufficient industry consultation and collaboration, a solution can be found that accommodates the Health department's requirements, improves business conditions in our capital city, and does not further deteriorate an already fragile office market.”
For more information or to purchase the January Office Market Report, click here.
Ruth Palmer | E [email protected]