Perth office market on the mend

Results from the latest Property Council Office Market Report show that Perth experienced the largest decrease in vacancy of any Australian capital city.

The Perth CBD office vacancy rate dropped from 22.5% to 21.1% in the six months to July 2017.

“The results indicate that the Perth vacancy rate has peaked with both West Perth and the CBD recording the highest and third highest decrease in vacancy respectively across the nation,” Property Council WA Executive director Lino Iacomella said.

“However, Perth still has the highest vacancy rate of any capital city and much higher than the national average of 10.2%.

“There are positive signs in the Perth office market with CBD net demand more than three times the historical average over the six months to July 2017. It was only the second time in five years that Perth showed positive net demand.

“These results were driven by an increase in demand from tenants. There was also minimal new stock introduced to the market with no space in the pipeline until Q4 2018 when the Woodside building comes online.

“We are seeing a clear flight to quality as companies move around within the CBD looking for better facilities at a better price. We’ve also seen companies begin to expand, requiring more office space within existing tenancies.

“These results suggest Perth has reached the bottom of the economic cycle and the property industry is ready to keep WA growing through the creation of jobs and strong communities,” Mr Iacomella said.

Media contact:  Lino Iacomella   |   E  liacomella@propertycouncil.com.au