An artist’s impression of the new A-grade building to be developed at 19 National Circuit. Image: Colliers.
All Canberra staff of the Department of Foreign Affairs and Trade will be housed in Barton from the second half of 2027 after the signing of a 15-year lease for a new 19,800 square metre office building to be built at 19 National Circuit.
DFAT will move the third of its 4500 staff working out of two office sites in the CBD and one in Barton, separate from the RG Casey Building nearby, to the new building.
In a submission to the Parliamentary Public Works Committee last September, DFAT stated that consolidating staff in Barton would be more efficient and reduce security risks.
DFAT operates a shuttle bus between the offices at a cost of $300,000 a year. Each of the buildings requires its own guard posts, but they are not considered up to scratch in the current security environment and under new standards issued by Home Affairs.
The new six-storey building, being developed by Cromwell Property Group, will be located 500 metres from RG Casey and 200 metres from the National Security Office Precinct, which is currently under development.
The leasing deal with Cromwell comes with an option for a five-year extension.
Colliers, which negotiated the deal alongside Cromwell, said that an in-demand location, sustainability credentials, and a strong security capability were factors in the Commonwealth’s decision to move ahead.
Colliers ACT State Chief Executive Iain Davidson said construction was expected to take two years, with DFAT able to start relocating staff from mid-2027.
“This deal was a long time in the making, with the initial tender being released in June 2023, and given such a tight economic environment for office assets, it took a long time to come to fruition,” he said.
“We are very excited about this announcement and our work with Cromwell Property Group and the Commonwealth to get the project to this stage.
“Our focus now shifts to the project management and delivery of the new A-grade office development.”
The building is designed to achieve a 6-star NABERS Energy rating and a 6-star Greenstar rating.
It will not be far from the new Australian Tax Office headquarters being developed by Doma Group and BLOC on the corner of Sydney Avenue and National Circuit.
Barton, with its proximity to Capital Hill and Parliament House, is in high demand from Commonwealth departments and agencies.
Colliers’ national director of office leasing Aaron Bruce said the A-grade office vacancy rate there was the tightest across the country at just 1.4 per cent.
Cromwell CEO Jonathan Callaghan said that despite challenging market conditions, the project stood out as a compelling opportunity.
“The project will be led by Cromwell’s skilled in-house Development team, ensuring the delivery of a top-of-the-line facility,” he said.
“With a long lease to the Australian Commonwealth Government, a AAA-rated, low-risk tenant, this initiative is expected to drive strong returns.”
The total cost of the project is expected to be $201 million.
The current leases at 44 Sydney Avenue and 51 Allara Street expire in May 2026 and June 2026, respectively; however, these are expected to be extended until the new Barton site is occupied.
The lease at 255 London Circuit does not expire until September 2027.
Finance Minister Senator Katy Gallagher endorsed DFAT’s lease proposal in September; however, it required approval from the Public Works Committee.
