Quality office space in short supply Australian Capital Territory

April 2018

Canberra’s office market remains tightly held, with buyer demand outstripping supply.

In this robust and competitive market, quality properties are a rare commodity.

Nick Cotis of Raine & Horne Commercial Canberra says, “On the sale side, we can’t find enough quality properties to sell. They’re very tightly held as usual.”

However, a significant sale – with a ten-year lease to the government – is an exception. It has garnered strong interest from many groups worldwide and is expected to fetch about $30 million.

Office vacancy rates have stabilised at about 9.5%, with A-grade office space at 8.9% and B-and-C-grade around 12.8%.

Several older-style office buildings are in the midst of refurbishment, while A-grade stock is in limited supply.

Nick observes with fewer A-grade buildings expected to hit the market in the next couple of years, many C-and-D-grade buildings were in need of re-purposing or a refurbishment.

Meanwhile, Nick notes that the industrial sector has remained strong. “Mitchell, on the northern side of Canberra, is almost full up. It’s hard to find anything reasonable for lease there now,” he explained. “Yields range from 7.0 to 8.5 % for retail, 8 to 9.0 % industrial, and 6.5 to 10 % for office.”

Why Raine & Horne Commercial?

Our full-service commercial real estate network can provide in-depth knowledge of local and regional property markets, with insight and understanding that comes from being a part of a long-established national and international property group. Committed to personalised service and achieving unsurpassed results, our clients continue to benefit from our network strength, which allows substantial cross-flow of international referral, advice and investment.

The Raine & Horne Commercial network is comprised of 100% owner-managed offices and includes numerous industry leaders and award winners. We employ agents who are empowered, encouraged to share and who maintain first rate communication to deliver the best possible outcome with every transaction. We pride ourselves on staying abreast of local and national trends and developments in the property industry, resulting in consistently cutting-edge services and holistic solutions for our clients.

Our industry experts embody and respect the family-oriented values synonymous with the Raine & Horne Commercial brand, allowing us to provide a complete range of professional services for all aspects of commercial, industrial, retail sales, leasing and specialist properties.