22 August 2025

First fit-out in department's new home to cost $23.4 million

| By Ian Bushnell
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7 London Circuit in City West will have seven desks for every 10 employees.

7 London Circuit in City West will have seven desks for every 10 employees. Photo: CBRE.

It will cost the Department of Infrastructure, Transport, Regional Development, Communication, Sport and the Arts more than $23 million to fit out the first building in its two-stage precinct approach to moving into its new home at 7 London Circuit in the city.

This is based on an estimate of $2413 per sqm, higher than the standard fit-out cost of $1500 to $2000 per sqm.

The department’s submission to the parliamentary Public Works Committee says the extra cost reflects the building’s premium-grade classification, larger scale, elevated Canberra market rates, and the inclusion of flexible, agile workspaces with specialised ICT and the enhanced Zone 3 and 4 security systems the department requires.

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In July, the department signed a 15-year lease with ISPT worth $125m for the two tower address in City West on the new light rail line.

The new lease will allow the department to consolidate its four offices – three in the city and one in New Acton – in the one precinct.

It will occupy 9716 sqm across levels one to four and part of level five in Building 1, timed to meet the end of leases at 111 Alinga Street and 62 Northbourne Avenue on 30 June 2026.

Building 2 will provide the remaining 13,500-15,000 sqm required to meet the Nishi lease expiry date of December 2027. This will be dealt with in a separate submission.

Overall, the precinct approach will reduce the department’s footprint by 40 per cent, from 39,153 sqm to about 23,500 sqm.

The submission says that a precinct model consisting of two existing buildings close to each other is the only option that will address the two leases expiring in 2026, due to limited availability of existing A-grade buildings.

Extending leases at 111 Alinga Street and 64 Northbourne Avenue would trigger four-year renewals.

“The precinct model presents the lowest risk and cost, meets critical lease end dates, and supports the department’s long-term strategy,” the submission says.

It also takes into account that staff will continue to work several hours per week from home.

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The department says there will be seven desks for every 10 employees to “minimise space and maximise collaboration, based on successful strategies from other Commonwealth departments”.

It says this will be a more efficient use of space and address previous overallocation in the existing buildings.

SES staff will have a dedicated office while all other staff will have access to a work point.

But the department says the move to a non-allocated desking environment, known as hot-desking, will be a new concept for staff and will be carefully managed.

The fit-out design is mainly open plan with modular workstations supported by more meeting spaces, breakout areas and support facilities.

Offices and formal meeting areas will be sited in the core of the building to maximise the use of natural light.

Original Article published by Ian Bushnell on Region Canberra.

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