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The Canberra Times
The Canberra Times
Miriam Webber

Infrastructure's new $315m lease bucks major trend in APS office moves

The Department of Infrastructure has signed a $315 million lease for its new city office, securing its presence in Civic for the coming decades.

Staff will move into Morris Property Group's new office at One City Hill from July 2027, with the lease locked in for 20 years.

Departments increasingly want to be housed in the parliamentary triangle. Picture by Sitthixay Ditthavong

The department has also signed an $125 million lease at 7 London Circuit for some of its staff, as it seeks to consolidate four expiring leases.

The decision to stay put in Civic comes after fears more departments will shift their offices to the increasingly popular parliamentary triangle, after the Tax Office made the controversial move this year.

The Employment and Workplace Relations and Education departments have also committed to staying in Civic, signing a $720.6 million contract for 15 years at Capital Property Group's London Central development.

Office moves are a big business in Canberra, with leases totalling hundreds of millions of dollars, and the impacts of moving thousands of people around felt by local businesses.

With several exceptions, federal departments are largely clustered in the city and in the streets surrounding Parliament House, with a suite of new leases in recent years sticking to this trend.

Services Australia will remain in Tuggeranong but is downsizing from four leases to two, allowing its two offices on Reed Street to lapse when the leases expire in February 2027.

Health will keep its presence in Woden until at least 2035, while Home Affairs is based in Belconnen but does not publicly list its lease.

The department also has two offices in Brindabella Business Park, where Defence also has a presence.

Meanwhile, Chief Minister Andrew Barr's pitch to move a federal department out to Gungahlin has not come to fruition.

Mr Barr submitted a prospectus to the federal government advocating for a department or flexible work hub in the town centre in 2022.

The Department of Foreign Affairs and Trade (DFAT) has moved about 1000 of its staff out of Civic and closer to the National Security Office Precinct, signing a new lease at 19 National Circuit.

DFAT will be an anchor tenant of the new national security office base, to be completed in 2028, though the department has not said whether it intends to move out of the nearby RG Casey building.

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