Quality counts in Darwin CBD office market 

The Property Council of Australia has compiled its annual comprehensive audit of office space in over 25 markets across Australia.

Northern Territory Executive Director of the Property Council Ruth Palmer said that while our vacancy rates show Darwin has dropped to 16.8 per cent from 17.2 per cent over the year,  timing of the report has influenced this outcome.

“Along with the Cavenagh House demolition, extra space leased in the TIO Centre and Charles Darwin Centre has contracted vacancies in the A Grade segment.

“To put it in numbers we have seen 6,613sqm of withdrawals and 4,533sqm of net absorption in January 2019. In January 2020, we have seen no withdrawals and 6,475sqm of net absorption. [See table below].

 “The results indicate that we are seeing pockets being filled up in better quality buildings, but we must remember that is more of a timing issue, rather than any real reduction of space available for lease.

“We already know that there will be 12,248sqm of space due to come online from 2022 onwards. 

"We need to continue to focus more on improving amenities in the City that aim to bolster construction, retail, hospitality, tourism, and the ever-growing number of residents that call the city centre their home.

“Taxes and levies don't encourage investment and they definitely will not improve the performance of the CBD. We believe it will further deteriorate the market.

“Last year we released our 20 by 20 reforms which would assist with the vacancy rates and activity within the Darwin CBD. We strongly recommend that the NT Government and Council move forward with proposed reform.

“Keeping the Cities Deal moving is also a major priority in activating vacant spaces, along with a stronger economy and a population growth.

“It is difficult to activate buildings when we have consistently recorded a negative change in population.”

Media contact: Ruth Palmer | M 0450 428 314  |  E rpalmer@propertycouncil.com.au

 

Key market indicators, Darwin (aggregate)

Grade

Vacancy,

Jan 20 (%)

Vacancy,

Jan 19 (%)

Net absorption, 12 months to Jan 20 (sqm)

Net absorption, 12 months to Jan 19 (sqm)

A

7.1

8.1

7,598

5,726

B

28.2

27.4

-464

-431

C

58.7

54.8

-659

-762

Total

16.8

17.2

6,475

4,533