Canberra office market will grow, albeit slowly: Savills

The February Canberra Office briefing from Savills has noted the local market will continue to grow, albeit slowly, due to the recent completion of 'A grade' buildings in Forrest and Gunghalin.

As a result, according to the report, the recent speculative development cycle has closed with future office supply reduced significantly compared to previous years.

"Less than 10,000 square metres of new and refurbished space is currently under construction and/or due for completion by the end of 2016, with no further development in the immediate pipeline," the report notes, adding there is a significant level of ‘mooted’ supply overhanging the market but dependent on leasing pre-commitment. 

"Rents for new and near-new ‘A Grade' stock have been maintained at a stable level, although there has been a threat to Face Rent levels in the older ‘A’ Grade properties, and an associated volatility in the level of incentives on offer for this class of property.

"Rents for secondary grade stock are forecast to continue to be under pressure during 2016, with upward pressure on the level of incentives required to secure tenants for this class of property."

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