Market conditions are stabilising in Canberra, thanks to a gradual pickup in demand for A-grade accommodation led by government.
As a result of improving demand and little new supply compared to recent history, the vacancy rate has trended downward and effective rental growth has emerged. The government's "Operation Tetris" initiative, which aims to reduce the quantum of vacant office space is well underway and driving declines in sub-lease vacancy.
14,155 SQMTotal Lettable area
9.6 YearsWeighted Average lease expiry
Demand for secondary-grade space is likely to remain weak as the flight to better quality stock continues
A-grade space rents are likely to expand as occupancy markets improve
The weakness in the secondary market will encourage withdrawals of assets to be converted to alternate uses