Property Council vacancy rates released: Darwin CBD’s glimmer of light
Darwin’s vacant CBD office glut has shown a small glimmer of light with latest vacancy rates revealed.
Northern Territory
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Darwin’s vacant CBD office glut has shown a small glimmer of light with vacancy rates dropping from 14.4 per cent to 11.9 per cent over the past year.
Property Council Northern Territory executive director Ruth Palmer says the organisation’s market report for January 2025 reveals encouraging signs for Darwin’s CBD office market.
She said the improvement has largely been driven by the withdrawal of 7298 sqm of office stock.
Ms Palmer said lower grades of space were still facing significant double-digit vacancy rates with C Grade space sitting at more than 40 per cent.
A Grade CBD office stock has improved more than 2 per cent with the 7.5 per cent 2024 figure improving to 5.3 per cent this January.
B Grade Darwin CBD office rental stock improved by a similar margin with the January 2024 figure of 22.2 per cent now at 20.5 per cent for January 2025.
As bad as it is, C Grade stock has shown a healthy improvment.
In January 2024 it was a grim 50 per cent Darwin CBD vacancy rate.
The latest Property Council of Australia Office Market Report for January 2025 has the figure now at 41.1 per cent.
While welcoming the reduced vacancy rate Ms Palmer emphasised the challenges and opportunities in the Darwin market.
“The data highlights the urgent need for a strategic approach to ensure Darwin remains competitive, liveable and economically vibrant,” she said.
“The drop in office vacancy rates is a positive step for Darwin’s CBD, but it’s important to acknowledge the critical role that stock withdrawals played in this outcome.
“The lower grades of office space are still experiencing significant vacancies.
“This underscores the need for innovative solutions to address under-utilised stock.
“Darwin is a small market, and small shifts — whether in supply or demand — can significantly impact our vacancy figures.
“We are working closely with government departments to streamline policy and legislative changes that support the conversion of underused commercial spaces into much-needed residential accommodation, an election commitment made by the CLP.
“The Property Council remains committed to working with stakeholders to shape a sustainable future for our city.
“Our annual State of the Market event in March to be held in Darwin and Alice Springs, will be an essential forum for exploring the Territory’s broader property landscape, covering office, residential, industrial and retail markets.
“This is an opportunity to unpack the trends, highlight challenges and identify practical solutions for our unique market.”
The Darwin CBD has historically always recorded high vacancy rates.
On total average it has often hovering around the 20 per cent mark and more often than not been the highest in the nation.
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Originally published as Property Council vacancy rates released: Darwin CBD’s glimmer of light
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