The commercial market within Darwin comprises 3 main areas: Darwin CBD, Casuarina and Palmerston.
The Darwin CBD office rental market continues to be influenced to a large extent by the NT and Commonwealth Government, which represents approximately 70% of the office market demand.
Rentals for “A” grade office space within the Darwin CBD are now between $450 to $500 per sqm, with very little available vacant space, Darwin having one of the lowest vacancy rates of all Australia’s capital cities.
Those properties that remain vacant are generally of “B” or lower class, with lesser demand.
Significant recent trends/events within the Darwin CBD include:
Sale of Jacana House for $58.75 million in December 2011. A brand new, 5.5 star NABERS rating building with 10,180 sqm of NLA. Majority leased to Commonwealth Government on a 15 year term.Proposed redevelopment of Paspaley Centre on Smith Street Mall announced, due for completion in 2015. A 22 level building with 14,300 sqm of office space, 850 sqm of ground level retail and 275 car parking spaces. The NT Government has agreed to lease 9,970 sqm of the office space.Refurbishment of older “B” grade office buildings including the ANZ Bank building and AANT House.Increasing use of CBD located sites for residential apartment construction.
There is very little Class “A” office space available in either Casuarina or Palmerston. With Darwin’s population grow based around Palmerston, growth in office and retail requirements in this locality will increase.
Casuarina Square shopping centre remains Darwin’s premier retail precinct. Demand for larger retail tenancies in the Darwin CBD remains slow by comparison.