Perth Spotlight + Trends Affecting The Market
Perth is currently a tenant’s market and is likely to remain that way for the foreseeable future. Here’s a quick snapshot …
Average gross rental rates for A-Grade spaces in the Perth CBD have remained steady over the past 12 months at about $730 per square metre. This rate is slightly cheaper than the Melbourne CBD average ($745) and somewhat more than the Brisbane CBD (about $690). Average prices are $500 per square metre in West Perth, which is about one kilometre from the CBD.
However, the incentive levels for office space in Perth are the highest in Australia, averaging a whopping 49% in the CBD, and only slightly less in West Perth (about 47%). These rates are almost triple the average incentive rates in the Sydney CBD, nearly double that of the Melbourne CBD, and well ahead of what’s on offer in both the Brisbane and Adelaide CBD markets.
Vacancy rates for office space in the Perth CBD are more than double the national average at just under 20%, while in West Perth the vacancy figure is around 16%. Those rates give tenants (and potential tenants) plenty of power at the negotiating table, particularly if they are represented by an experienced tenant advocate.
Stock levels have also remained steady over the past year in both the CBD and West Perth markets. There are no major development projects in the pipeline that will be completed before 2021 or beyond.
What’s affecting the market?
Besides the high incentive levels and vacancy rates in the CBD and West Perth markets, tenant “recentralisation” in West Perth is on the increase – that is, tenants are increasingly moving back into the West Perth from suburban markets.
While office vacancy rates there remain high when compared with the national average, they’ve dropped in recent years and are now lower than the rate in the Perth CBD. This is partly due to the number of tenants relocating from suburban locations to the affordable office space that’s readily available in West Perth.
Tenant Representation Perth
Tenant CS is a commercial tenant advisory business that offers tenant representation services in Perth. We can also cater to organisations across Australia, with a particular focus on Sydney, Melbourne, Brisbane, Adelaide and Canberra.
We represent you, the tenant, and our in-depth knowledge of the Australian leasing market gives our clients a competitive advantage when it comes to finding a space or negotiating a commercial lease.
If you’re on the hunt for tenant representation services in Perth, get in touch with our team today!