When more than 2,000 public servants vacate the office space above his café next year, business owner Jaye Min anticipates significant challenges for his establishment in an area he describes as becoming a “ghost town.” The move, set for 2026, will see the Australian Taxation Office (ATO) relocate from its current Genge Street location in Civic to a new building in Barton.
Mr. Min, who owns Bad Bunny Eatery, expressed concerns about the future viability of his business. “We operate with minimum staff on the weekdays because of how quiet the city is,” he said. “We’re going to struggle.”
Impact on Local Businesses
The ATO’s relocation is just one of several government department moves that will affect the Civic area. Not long after the ATO’s announcement, the Department of Foreign Affairs and Trade revealed plans to move its Civic staff to the Parliamentary precinct. This move will consolidate three leases, including two in Civic that house about 1,000 staff, into one location in Barton by October 2026.
Similarly, the Department of Home Affairs will relocate 290 staff from its Constitution Avenue office to Belconnen and Brindabella Park when the city lease expires in mid-2026. Meanwhile, Infrastructure’s upcoming move to London Circuit will leave its Alinga Street and Northbourne Avenue offices vacant.
Bad Bunny Eatery manager Aleksandra Sekovska echoed Mr. Min’s concerns, fearing the business will struggle once public servants move out. “We’re not going to have as many people walking by and buying coffees,” she said.
The Broader Implications
Despite Civic’s offering of public transport connections and proximity to shops, the Parliamentary Triangle continues to attract departments. CBRE ACT managing director Nic Purdue noted that proximity to senior decision-makers within the Australian government is a significant draw. “The proximity to senior decision makers within the Australian government is always going to be attractive,” he said.
However, Australian Strategic Property Adviser managing director Stephen Oxford questioned the logic behind the moves, given that Barton was never designed to be a town center. “It doesn’t make sense,” he said. “Departments have all moved into Barton in recent years, and it’s tens of thousands of public servants extracted from a city with underutilized amenity into a non-town center without the amenity to support that workforce.”
“What they’ve left behind are these redundant buildings that are really early in their useful life. So there’s a lot of thinking to be done.” – Stephen Oxford
Challenges for Landlords and the Environment
With Civic already undergoing major renovations due to light rail works and Garema Place’s facelift, empty office buildings could exacerbate challenges for the city’s business community. Mr. Oxford pointed out that landlords will struggle to fill vacant offices with private sector tenants, who usually require much smaller spaces.
New Commonwealth requirements stipulate that any new office leases longer than four years must be in buildings with a 5.5-star or higher NABERS energy rating. Mr. Oxford argued that moving from relatively new buildings to newly built ones every 15 years is not environmentally sustainable. “I’d probably argue it’s not a good environmental outcome,” he said.
Colliers national director of office leasing, Aaron Bruce, highlighted that the ACT’s lease variation charges would prevent landlords from repurposing offices into hotels or residential developments. “Until the tax settings change to allow more efficient and more profitable reallocation of potential buildings in the city to alternate uses, there’s not enough demand for all of them to stay full,” he said.
Looking Ahead
Mr. Purdue emphasized the need for discussions about the long-term impacts of the federal government’s exit from Civic. “There’s a real challenge and a real headwind coming for the city that landlords, tenants, government, all need to work together to try and solve,” he said.
As Civic faces the prospect of becoming a “ghost town,” local businesses and stakeholders are left to ponder the future of the area and the potential for revitalization. The business community, alongside government and property experts, must navigate these changes to ensure Civic remains a vibrant and thriving part of the city.
