Canberra recorded a low commercial property vacancy rate of around 1.2 to 1.3 per cent throughout 2007 – the lowest for more than 15 years – with demand for quality office space at an all time high.
Although new supply is now reaching the market, there are strong calls for the ACT Government to free up more space for commercial real estate in Civic and the town centres to meet the requirements of small and medium businesses and government agencies.
Several projects in Canberra City will bring an additional 270,000 sqm of office space by mid 2012. With most projects pre-committed, the most notable is the Bovis Lend Lease construction of a $50 million building at Marcus Clarke Street in Civic. Due for completion in 2008 the eight storey commercial project will include a ground floor terrace café, and three levels of basement parking.
In the Canberra non-city areas, the forecast is for 585,000 sqm of office space to come onto the market which includes the development of the Therapeutic Goods Administration building at Symonston. This property is one of five industrial properties acquired by Cromwell Property Fund and the PacLib Group and increases their portfolio value to over $445 million.
With the commercial office sector projects underway this signals strong growth and is likely to spur on the industrial market in the ACT .
Commercial Property Outlook 2008 - Australian Capital Territory 
