The heritage-registered Callam Offices, praised for its "space age" aesthetic, face being sold, as the ACT government appears set to abandon its plans to upgrade the 1970s building.
Bringing the Woden building up to modern standards would have cost about $80 million, Special Minister of State Chris Steel revealed in July.
"That was a very significant expense, so the government is now considering what the future of Callam Offices is. It is a heritage-listed building, so it will remain in some form, we expect, and we are still considering what those options are for the building," Mr Steel said.
The government on Tuesday confirmed it had commissioned a feasibility study for selling the Callam Offices that would consider heritage protection requirements.
"A body of work was undertaken in 2022 to assess the extent of work and costs required to carry out a range of rectification works at Callam Offices," the government said, which prompted them to commission the study.
A commercial property industry figure said the site would be appealing to most of the "key players" in development in Canberra and interstate if it were released for sale.
Burgess Rawson managing director Guy Randell said developers would be drawn to the site's CZ2 zoning, which would allow for residential, commercial, recreation facilities and community uses.
Without knowing exactly what the block's heritage restrictions would be, Mr Randell said the right owner could turn the offices into something "iconic".
"From a residential or commercial aspect, it would take a bit of creativity and a little bit more capital for any developer to then be able to build something that's going to be iconic," he said.
The ACT's heritage laws only allow the heritage council to cancel a registration if it is satisfied the place no longer has heritage significance.
Mr Steel told budget estimates in July the government was considering what the other options were for the building.
"I do not want to see it sitting there as a monument to brutalist architecture, empty for the rest of time. We will look at the options and see what is possible," Mr Steel said.
Only $52,002 has been spent from $15.252 million already budgeted on upgrades to the building's ventilation and heating system, an answer to a question on notice from the Greens' Jo Clay in budget estimates showed.
Mr Steel said ACT public servants from Major Projects Canberra would be moved into the city out of Callam Offices.
"There is the option of spending a very considerable amount of money on upgrading the building just to meet basic standards like fire standards, plus investing even more to get it up to an even better specification, or doing something different," he said.
"We are looking at what those other options are, regarding what Callam could potentially be used for, and what the range of uses might lend themselves to."
The Legislative Assembly's standing committee on environment, climate change and biodiversity recommended in its 2021-22 annual reports inquiry the government urgently develop a conservation management plan for Callam Offices and invest in their modernisation and restoration.
The government said in its response, tabled on Tuesday, it had commissioned the management plan and completed work to assess the costs required to upgrade the building.
"Based on this work the government has asked for a feasibility study to be undertaken within the 2023-24 financial year to investigate the potential divestment of Callam Offices which will take into account the heritage nature of the site," the government's response said.
The buildings, which were heritage registered in August 2008, were designed in 1973 by internationally renowned architect John Andrews to sit above the Woden flood plain.
The three completed pods were planned to be part of a group of 26 three-storey buildings, providing office space for 6000 public servants. Federal funding cuts meant the broader project was abandoned and work on the three pods took place between 1977 and 1981.
The heritage council noted the late 20th century structuralist building was of interest due to its "conceptual planning and styling as well as for their radical construction method" and said relatively few buildings were constructed in this style in Australia.
"Acknowledged by the architectural profession, writers and critics alike as an important work of an important Australian architect, the Callam Offices are a landmark component of Woden Town Centre, and of Canberra," the statement of heritage significance said.
In 2019, the ACT government embarked on a plan to upgrade the building, refurbishing the site to house 200 staff from Major Projects Canberra.
In 2011, the ACT's then head of land and property, David Dawes, said the Callam Offices, Macarthur House and Dame Pattie Menzies House had been collectively valued at $100 million. The latter two buildings have since been sold and demolished.
Mr Randell said it was too early to speculate on the site's current value, the cost to modernise the offices would be factored into any future sale price, as would the potential for any additional gross floor area.
"Being a town centre site, close to the new light rail, new CIT and all the government buildings, it would be highly-sought after," he said.
