CBD revitalisation key to improving commercial office vacancy rates


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 our vacancy rates show Darwin have increased from 16.8 per cent to 19.7 per cent over the year, due to significant supply additions and negative demand.

“The results indicate that we are seeing pockets being filled up in better quality buildings, leaving the C grade buildings at a concerning 56.4 per cent vacancy.

“We already knew that there was to be approximately 12,000sqm of space to come online from the end of 2020 onwards. 

“The movement of health employees into Manunda Place has left a gap in office space with “Health House” now unoccupied.

"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.

“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,” said Ruth Palmer.

Media contact: Ruth Palmer | M 0450 428 314  |  E [email protected]

Key market indicators, Darwin CBD (aggregate)

Grade

Vacancy,

Jan 21 (%)

Vacancy,

Jan 20 (%)

Net absorption, 12 months to Jan 21 (sqm)

A

12.5%

7.1%

-3,318

B

27.2%

28.2%

667

C

56.4%

58.7%

374

Total

19.7%

16.8%

-2,277