- A Centrelink building constructed over 30 years ago has been sold
- Malaga property up for lease for the first time in 15 years
- Perth CBD office leased as demand for quality spaces grows
The latest in commercial has seen two properties come to market after decades, one sold and one for lease, and a CBD office has been leased as the flight to quality continues in the sector.
Victoria Park Office sold for $8.75M
The single-story building in the Perth suburb of Victoria Park has sold for the first time since it was built by six local country families for Centrelink more than 30 years ago.
Located at 117 Shepperton Road, the property has 2,352 square metres of net lettable area with 84 undercover car parks and 14 visitor car parks on a 4,082 square metre site.
The office is located directly behind the Woolworths-anchored Victoria Park Central Shopping Centre.
Acquired by two local investors, the property sold for $8.75 million to show a 6.66% net return in a deal negotiated by Knight Frank’s Tony Delich.
Delich said: “The buyers saw the potential of very good holding income with a view to develop the large site located at the highest point in Victoria Park.”
“The local council, the Town of Victoria Park, is currently reviewing their planning scheme which will allow higher-density mixed-use development in the town centre which includes this site.
“The State Government also recently announced they are streamlining development approvals to encourage residential infill development.
“In the meantime the buyer can take advantage of a quality covenant providing solid income.
“Given the prominent location and occupancy history we believe Centrelink will remain as a tenant for the short term at least for the next four years but likely longer given location and history of occupancy.”
Industrial leasing in Malaga
An industrial facility along Perth’s northern corridor is being offered to the market for the first time in circa 15 years, according to Cushman and Wakefield’s National Director & Head of Industrial & Logistics, Nick Goodridge.
Located at 400 Victoria Road in Malaga, the leasing opportunity is for a corporate-grade industrial facility that includes 4,250 square metres of total floor area, including a high clearance, sprinklered warehouse facility and corporate offices.
Goodridge said: “The property has a rich history of long-standing blue-chip occupiers, and with the industrial vacancy rate at a record low of sub 1%, we expect strong interest from the market with pent-up occupier demand, particularly from logistics and manufacturing sectors”.
Federal government tenant secured for Perth CBD office
Colliers recently announced the full floor leasing to a Federal Government tenant at the Centuria Capital Group (ASX: CNI) managed Australia Place on a five-year term.
Located at 15-17 William Street in Perth’s CBD, the leasing transaction was secured across 1,227 square metres.
National Director Office Leasing, Jemma Hutchinson said “Australia Place is in the process of undergoing a full lobby refurbishment. This repositioning of the asset will further cement Australia Place as a sought-after accommodation option for corporate occupiers.”
Mr Trimboli said “We continue to see sustained demand for good quality fitted space within the Perth CBD. Landlords that can offer a turn-key office solution will have a significant competitive advantage.”
Highly sought-after wellness, experience and ESG features, often required to push leasing deals for quality assets across the line, will commence redefining the investment landscape this year.
Mr Trimboli said “The value of office space has evolved post pandemic to emphasise employee experience over headcount to space ratios. This is further emphasised by the battle for talent – with staff attraction and retention front of mind, occupiers are taking the opportunity to upgrade their accommodation and ensure their employees are given the best working experience possible.”
Moving forward, quality office assets with considered community and staff amenity pillars in prime catchment areas will remain highly sought after.
Mr Trimboli said “With four consecutive halves of positive net absorption, sentiment in the market is positive. Whilst we will have new and refurbished supply hitting the market we anticipate vacancy levels to continue to decline given how active the leasing of backfill space has been.”
“We anticipate these strong levels of enquiry and leasing activity to continue throughout the balance of the year.”
