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Office space demand – through the roof in the ACT

Demand for office space in the ACT was 109 per cent higher in the first quarter of 2019 compared to the same period last year, according to Colliers International’s latest Office Demand Index.

“Nationally, the strongest growth in demand was for office space ranging from 1,000 to 2,999sqm an the ACT definitely was not immune to this trend, recording a 70 per cent increase in interest in workspaces of this size,” Colliers International Director Office Leasing, Michael Ceacis said.

“The report predicts demand is likely to grow later this year for larger spaces. However, in the ACT we are already seeing this shift occur and experienced a 533 per cent increase in demand for over 3,000 sqm market segments during the first three months of this year.

“Coming on the back of the third quarter of 2018, when office demand reached a four-year high, the latest findings indicate Canberra currently has a booming business sector, with new entrants and expansions driving need for office space.”

The Office Demand Index shows nationally the increase in demand was led by the Information Technology, Education and Training, Finance, Insurance, Legal, Flex Space and Accounting industries.

“The demand for large office spaces is impacting on supply, making it challenging for ACT businesses who require a significant footprint to secure the square footage they want,” Mr Ceacis said.

“Add in the fact the Department of Defence has announced it is approaching the property market for leased office
accommodation solutions for existing Defence requirements in Canberra, and we don’t expect demand for large office spaces to fall any time soon.

“Businesses looking for space need to act quickly and early. One option they should be considering are the small number of new commercial buildings currently under construction in key locations such as the CBD and Parliamentary precinct as well as in our town centres.”

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