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The contract runs for 12 years and will harbour the consolidation of the telco's business as well as provide accommodation for a team being set up to deliver specialist telecommunications services to the Department of Defence.
The building is owned by Investa Office Fund and will be finished by early next year to fit more than 1000 people across 13,250 square metres of office space.
Telstra property director Vito Chiodo said the group was constantly looking to remix its large portfolio and leasing deals of this type were perfect examples of diversifying that mix.
"This will be the biggest project our property team has undertaken in Canberra and the largest for the company so far this year," Mr Chiodo said.
Telstra recently signed a six-year, $1.1 billion contract with the Department of Defence to provide telecommunications services.
J.P. Morgan's analysts said the Mort Street vacancy had been a concern for the market and said that securing a 12-year lease to such a quality tenant was a positive.
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