Why Industry House could be facing its biggest shake-up in 20 years

Industry House has been a fixture of Canberra's skyline for two decades, but questions are emerging about its future.

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The Department of Industry, Science and Resources is one of the most likely candidates for the next APS office move - away from Binara Street - according to real estate industry sources.

Industry House was a leader in energy efficiency when department staff first moved in. Picture by Graham Tidy

December 2026 will mark five years since the department's original lease at the building expired.

And new energy efficiency rules have added a hurdle if its leaders want to extend the current lease.

Built in 2006, Industry House has 25,000 square metres of floor space on 11 floors, including space for retail and childcare facilities.

It last changed hands for $151.7 million, selling to United Kingdom-based Brompton Asset Management in 2013, in what was the Canberra office market's biggest deal of the year.

The building's five-star national Australian built environment system (NABERS) rating made it a leader in energy efficiency when department staff first moved in.

But a government energy efficiency policy that came into effect in July 2025 has since changed that.

All new building leases signed by agencies for more than four years must now have a NABERS rating of at least 5.5 stars, ruling Industry House out.

There has been a trend towards shorter leases on federal government buildings recently, as agencies plan for future office moves.

Industry House was a leader in energy efficiency when department staff first moved in. Picture by Graham Tidy

Three agencies, including Education, Employment, and the Electoral Commission, asked for a 15-year lease with five-year extensions when searching for new homes in 2023.

But building owners looking for the security of a long-term tenant can often negotiate.

The Department of Infrastructure had to extend its lease length by five years in 2024, when its first approach to the market fell flat.

There is little information on the public record about the current lease on Industry House.

Evolve Facility Management runs most of the Department of Industry, Science and Resources' facilities services, including leasing, maintenance and building security.

The firm manages the department's rent bill through a $274.6 million contract signed in 2024, with an end date in 2030 and the option to extend to 2034.

A DISR spokesperson said its staff would work through future leasing arrangements in due course, through the usual whole-of-government processes.

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