An opportunity exists for a major tenant to influence the design and fitout of a new office building in the Gungahlin Business Park.
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The nearly 5000-square-metre block at 100 Swain Street could be developed into a scheme of 12,000 square metres of office space.
Raine & Horne Commercial agent Nick Cotis says an early mover would be able to inject their needs and ideas into the building's final design.
"The plan at this stage is for a building with a central atrium with interconnected stairwells and undercroft car parking," he says.
"But with interest from a major tenancy – public or private sector – then the owners are more than willing to sit down and ensure that their needs are considered in the final design and fitout."
Cotis says the owners also have the option of another approach to development of the site that could include street level retail with residential above.
"It's a question of gauging the level of demand for either option," he says.
"There are not a lot of A grade office buildings being designed at the moment, so 100 Swain Street represents a great opportunity for a tenant to secure accommodation in a top tier development."
The Gungahlin Business Park has been enjoying high demand for office and retail space and has reinforced the success of decentralisation.
According to Knight Frank's senior director of Office Leasing, Nicola Cooper, with the Federal election now over, it is expected that leasing activity will pick up over the coming 12 months.
"Leasing sentiment continues to improve in Canberra, albeit varying by precinct," she says.
"We are particularly expecting leasing activity to increase from government departments who, over the past six months, have held back on space commitments," Cooper says.
On the construction side of the equation, she says the supply pipeline is minimal at present.
"Any new supply is substantially pre-committed, with just 30,707 square metres expected to be added to the market over the next 18 months – stemming from the completion of the Tuggeranong Office Park," she says.
Colleague Luke Crawford says a period of modest effective rental growth is expected in Canberra's office market, stemming from both a small increase in face rents and a fall in incentives.
"Effective rental growth of between 2 per cent and 2.5 per cent is expected for both prime and secondary markets in the Civic and Parliamentary precincts over the next 12 months," Crawford says.
Who's in the market: A major private or public sector tenant is expected to shape the design of a new office building planned for Gungahlin.
