A Woden office building, Scarborough House, where close to 1000 health department workers are based, is on the market.
About 900 workers for the Department of Health and the Australian Digital Health Agency are based at Scarborough House on Atlantic Street, located behind the Sirius building which is the department's headquarters.
The once struggling town centre is undergoing a transformation. After an exodus of office workers, there is renewed interest in the area with residential and commercial developments under way.
The federal government's lease for Scarborough House is set to expire in June 2025.
Centuria bought the property in 2016 and are now looking for an investor.
JLL head of sales Tim Mutton said there had already been some interest from Australian "institutional investors", but no local companies at this stage.
"Woden is a prime commercial investment location," he said.
The 14-level office building is 16,755 square metres and was upgraded in 2005.
"Residential projects planned for the town centre will bring an additional 10,000 residents to Woden and infrastructure projects are under way," Mr Mutton said.
Expressions of interest for the site are open until May 12.
Mr Mutton said the deal would likely be completed at some point this year.
Colliers' director of capital markets and investment services Matthew Winter said the government as a long-term tenant would drive interest in the site.
"Woden is a precinct focused on health policy and delivery, where the major health challenges facing our nation get tackled," he said.
"Nearby Sirius is the Department of Health's headquarters. The ACT Department of Health is housed in Woden, as is Canberra's major hospital.
"With such a premium long-term tenant, the A-grade Scarborough House is the type of opportunity that only comes around occasionally."
The health department's workforce will remain at its headquarters at the Sirius building until at least 2035.
In 2019, the Department of Health negotiated the new agreement with Mirvac six years before its lease expired at the office block purpose-built for the federal agency in 2010.
At the time, securing the department as long-term tenants was welcome news for the area, which had been lagging behind other town centres.
Other federal agencies had moved out of the commercial hub, opting for locations in the city centre or Parliamentary Triangle.
While just a few years ago the Woden town centre was struggling, the area is set to be transformed in coming years with several mixed-use developments under way and in the works.
The former office for the Department of Prime Minister and Cabinet and Veterans' Affairs in Lovett Tower is also set for a new lease on life.
Brite Developments are expected to lodge a development application soon to adapt the building into student and commercial accommodation.
The office building has been empty for five years.
Geocon recently completed the 430-apartment complex, Grand Central Towers, opposite the Hellenic Club.
Zapari also has a high-rise residential development planned for the site on the corner of Brewer Street and Corinna Street, which would include about 400 units.
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