Record-low Barton vacancy spurs new office build

Construction is set to begin on a six-storey office development in Canberra’s tightly held Barton precinct, as ACT-based syndicate partners Chase Group and Kenyon Investments move forward with a 2022-approved project at 40 Brisbane Avenue.

The scheme will introduce 16,562 square metres of net lettable area to the market, featuring large 2800-square-metre floorplates designed for flexibility and efficiency.

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The building will also incorporate premium end-of-trip facilities, wellness areas, and dedicated conference spaces, aligning with evolving workplace expectations for sustainability and amenity.

Colliers national director of office leasing Aaron Bruce said Barton remains one of the most competitive office markets in Australia, with A-grade vacancy sitting at just 0.9 per cent. “The site’s proximity to critical Commonwealth departments positions it at the centre of government and policy activity,” Bruce said. “It is directly adjacent to the new National Security Office Precinct, placing those based there within one of the most influential and secure precincts in the country.”

Designed with sustainability at its core, the new building will be powered by renewable electricity and is targeting a 5.5 Star NABERS Energy rating and a 5 Star Green Star certification. The project reflects a growing focus among Canberra developers on creating energy-efficient workplaces suited to both government and private-sector tenants.

While Barton remains undersupplied, broader office conditions in Canberra are more balanced. The Property Council of Australia’s July 2025 Office Market Report recorded an increase in the city’s overall vacancy rate from 9.2 to 10.7 per cent, equal with Brisbane as the nation’s strongest-performing office markets.

Canberra’s pipeline remains moderate, with around 16,000 square metres of new office space expected to come online within the next six months. Improved connectivity through the expansion of the city’s light rail network is also expected to enhance the precinct’s accessibility and long-term appeal.

For Chase Group and Kenyon Investments, the timing of the 40 Brisbane Avenue project captures a rare opportunity in one of Australia’s most resilient and tightly held office markets.

Images via The Urban Developer