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News release

Canberra

2013 another strong year for the office investment market in Canberra

Sales as at September already at $334.9 million, closing in on the $412.8 million recorded for 2012


​CANBERRA, 18 NOVEMBER 2013 – The Canberra market is on track to deliver another strong year of office asset sales, following on from the very high levels of 2012 when $412.8 million of office product was sold.

Figures released by Jones Lang LaSalle show sales volumes for the office sector ($5 million and above) are already at $334.9 million as at the September quarter.  This compares to full year totals of $412.8 million in 2012.

ACT Head of Sales and Investments, Greg Lyons said, “We have had two very strong years in the ACT office investment market. The volumes being achieved are considerably higher than in 2010 and 2011, when volumes only reached $101.8 million and $118.8 million respectively.”

“The Canberra office market is now back up to 2008 and 2009 levels, where $461.3 million and $484.6 million of sales we recorded respectively,” said Mr Lyons.

The largest office transaction in Canberra this year was recorded in the third quarter, with the sale of 10 Binara Street to UK-based Brompton Asset Management for $151.7 million.

This transaction was negotiated by Simon Storry, Rob Sewell and Greg Lyons of Jones Lang LaSalle.

Mr Lyons said, “This significant transaction in the Canberra market this year highlights that major national and international investors are attracted to the Canberra market due to the quality of buildings and lease covenants available and the wider than normal yield spread that currently exists between Canberra and other CBD markets.”

“On a pricing metric, Canberra assets are on the cheap side of fair value.”

“The weight of capital looking for quality investment grade assets with outstanding lease covenants and the re-emergence of Canberra as a counter-cyclical market is likely to lead to an increase in transaction volumes in the next 6-12 months,” concluded Mr Lyons.