Clouds hover over Darwin office leasing market

The rental market for office space across Darwin remains moribund and it is difficult to see how this will change in the short or medium term.

However, some sub-markets do remain brighter than others, so a prudent investor might still see some opportunities.

Certainly, the more limited supply of A-grade space is more sought-after than lower grade space which is proving almost impossible to let.

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Vacancy rates in the Darwin CBD’s top four or five buildings are significantly lower than the rest of the CBD market and this situation is expected to continue as tenants seek out the limited supply of better quality accommodation.

Darwin’s CBD office market is trailing behind Australia’s other capital cities.

Some areas outside the CBD are also punching above their weight, especially Berrimah Business Park, which many tenants prefer due to its modern accommodation, availability of parking and its location closer to the demographic centre of Darwin.

Growth of the office market in the Palmerston CBD is expected to be stifled for some time due to the introduction of parking meters, the council’s well documented difficulties with the proposed new multi-level carpark and the loss of the Health Department’s office requirements to the Darwin CBD.

The market is also weak in Alice Springs. 

The main tenant is the NT Government and the fact they have adequate space means little market movement.

This article from the NT News was originally published as “Office space rental market remains gloomy”.