- Three new leases secured for Hay Street office building, asking rents from $385 sqm
- Marks half capacity reached with only three levels remaining for six-level building
- Showcases strength of demand for office space, coinciding with declining vacancy rates
Recent office leases in Perth are pointing positively to a tightening office market in the city despite recent Covid outbreaks.
According to data from Property Valuation and Advisory WA (PVAWA), Perth’s overall office vacancy declined to 15% in February, the lowest rate in seven years.
Now with the lease of an A-grade office building in West Perth to three separate tenants this month, it appears the market remains on a strong trajectory.
Vacancy rate falling as new deals emerge
The six-level office building, located at 1100 Hay Street in the heart of Perth, has secured three tenants in separate deals.
The leasing deals were negotiated by Knight Frank agents Greg McAlpine and Rick McKenzie on behalf of the building’s owner, The Woss Group.
The deals mark the A-grade office building reaching half capacity, with all of levels two and six now leased and only levels three to five remaining.
The new tenants have committed to leasing a combine 2,340 sqm of the 7,400 sqm building, with asking rents from $385 per sqm.
Galena Mining and 29 Metals have signed deals for 550 sqm each while a third international tenant has leased 1,240 sqm.
Mr McAlpine said the deal is exemplary of rising demand for office in West Perth, alongside declining vacancies as tenants snap up leasing space.
“The West Perth market is showing good levels of enquiry, with the vacancy rate finally falling from a historic all-time high of 22.1 percent in July 2020 to 18 percent in January 2022.”
Greg McAlpine, Knight Frank
Mr McAlpine added that he expects to see further decline in the office vacancy rate this year as strong demand for space continues.
Ample amenities attracts tenants
The refurbished Hay Street property offers tenants ample amenities including a tennis court, entertainment facilities, showers, lockers and abundant bicycle and car parking.
“The Hay Street building is particularly sought after as tenants seek quality space, with ample parking onsite,” said Mr McAlpine.
Mr McKenzie described the building as offering tenants CBD amenity without the price tag.
“The building amenity is also a drawcard, with a tennis court and entertainment area, modern end-of trip facilities, upgraded lifts and refurbished bathrooms.”
Rick McKenzie, Knight Frank
The building also offers panoramic views of Perth’s iconic Parliament Place and the surrounding CBD area.
“The property offers outstanding views from every floor with a combination of quality fitted tenancies and clear refurbished space on offer, all of which receive a high level of natural light throughout the floor.
“The central core and column-free nature of the floors provides for a highly efficient layout, whilst maximising the outstanding views of the nearby CBD skyline, Parliament House and surrounds,” Mr McKenzie concluded.