27 November 2023

Time running out for federal departments needing new office space

| Chris Johnson and Ian Bushnell
Start the conversation
artist's impression of office building

No more – an artist’s impression of what would have been London Quarter. Image: Walker Corp.

Three Commonwealth agencies that were hoping to move into a new 11-storey, 70,000 square metre office block on the corner of Canberra’s Northbourne Avenue and London Circuit are desperately looking for new homes.

With Walker Corporation, the developer of the proposed London Quarter office complex, having pulled the pin on the project, the Department of Employment and Workplace Relations, the Education Department, and the Australian Electoral Commission have had to rethink their moving plans.

After the National Capital Authority demanded a number of changes to its building design, Walker Corporation said it would no longer be able to deliver the project on time and decided not to proceed.

READ ALSO New general secrecy offence designed with PwC in mind

“We’ve worked very hard with the National Capital Authority to obtain works approval to deliver this significant project for our long-term and valued clients DEWR and AEC,” a company spokesperson said at the time.

“Despite the best efforts from all of the project team, the ongoing delays with obtaining that approval are such that the ability to meet our client’s delivery timeframe is no longer possible. For that reason, the project will not be proceeding as planned.”

A NCA spokesperson said a works approval application was submitted in late April 2023 and, after some discussions, the authority had expected to receive an updated design package for the proposal to be released for public consultation.

“After an initial review of the application and discussions with Walker Corporation’s design team, the proponents agreed to amend their application in relation to the height, size and scale of the building,” the spokesperson said.

“The adjustments to the design were informed by the National Capital Plan and comments from the National Capital Design Review Panel.”

DEWR had signed a 15-year lease for London Quarter and all three government tenants were planning to move to the new building from their current 50 Marcus Clarke Street premises in 2026.

Leases on the current premises expire between 2025 and 2027.

The 12-storey building sold last year for $335 million to Charter Hall and GIC.

Now the three agencies are scurrying to find new premises and are exploring a range of options, some of which would not involve them being housed any longer in the one building.

The result could be one, two or three buildings shared by all three departments; or DEWR housing its people in two neighbouring buildings; or the AEC opting for an office building all of its own.

READ ALSO Inland Rail may not bypass Wagga but ‘refinements’ are being made

Whatever the configuration ends up being, it is possible that a temporary fix will have to suffice until dedicated, purpose-built premises can be secured for all agencies.

They are pushing, however, for fast-tracking of procurement processes for new leases.

Initial 15-year leases with options for five-year extensions are what is being requested.

Floor space of at least 60,000 square metres is being sought for all three agencies.

There are also vital agency-specific requirements for leases, which include dedicated spaces able to accommodate media studios, command centres, change rooms, bike storage and even child care facilities.

Accessible and gender neutral facilities have also been requested.

Start the conversation

Be among the first to get all the Public Sector and Defence news and views that matter.

Subscribe now and receive the latest news, delivered free to your inbox.

By submitting your email address you are agreeing to Region Group's terms and conditions and privacy policy.