Increase in Perth’s office vacancy underlines the need to support the CBD

Perth's office vacancy rate has increased with the benchmark figure hitting 20 per cent, says the Property Council of Australia.

The Property Council’s latest Office Market Report reveals one fifth of Perth CBD office stock is considered vacant, marking a 1.6 per cent increase since July last year.

Sandra Brewer, Western Australia Executive Director of the Property Council, said, “Perth's CBD office vacancy rate was already at 18.4 per cent in July 2020, and West Perth's at 22.1 per cent – demand in the office market has been a challenge for Perth since 2016.”

“Clearly health restrictions and economic downturn caused by COVID-19 had a significant additional impact on commercial property in 2020.

“With more than 42,000 sqm of office space due to come online in the CBD over the next year, it will be crucial for the wider economy that we reverse the current negative trend in demand,” Ms Brewer said.

"We know that COVID-19 will have impacts on the way we work, especially when outbreaks occur, but the pandemic won’t last forever.

“Business and government have a critical role to play in supporting the return to office workplaces and helping more people come back to office precincts.

“The fact remains that offices and the CBD will always remain the lifeblood of our city centres, and drivers of productivity and innovation," Ms Brewer concluded.

Office vacancies are calculated on whether a lease is in place for office space, not whether the tenant’s employees are occupying the space or working from home.

Media contact: Emily Young | P 0475 161 328 | E eyoung@propertycouncil.com.au