Perth Office Market Vacancy Highest in Almost Two Decades
The Perth CBD office market vacancy has increased in the last six months, reaching its highest level in almost two decades.
The Property Council of Australia’s latest Office Market Report found that the office vacancy rate for the Perth CBD was 14.8 per cent in January 2015, up from 11.8 per cent in July 2014.
The Office Market Report is the most reliable, independent measure of office vacancy rates in Australia.
Premium-grade buildings were the only category to report a single digit vacancy rate at 8.5 %, almost double its rate in July.
“These results are in line with what the industry was expecting and preparing for,” said Property Council of Australia Executive Director Joe Lenzo.
“The office market in Perth is the barometer for the State’s economy. The lack of demand is a reflection of WA’s economic performance.”
“At the same time, we are undergoing a spike in CBD office stock with 149,601 sqm due to come online in 2015.”
“Longer term there is great optimism for Perth as the commercial office market stabilises.”
“The office market in West Perth is feeling the pinch also, reaching its highest vacancy rate since July 1999. It is anticipated that this will remain steady, with no additional stock coming online in the near future.”
“It is likely that there will be greater moves for office building refurbishment and the government has a role in incentivising these changes.”
For further comment:
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Joe Lenzo |
Graham Hansen |
Key market indicators, Perth CBD (aggregate)
|
Grade |
Vacancy, Jan 15 (%) |
Vacancy, Jul 14 (%) |
Net absorption, 6 months to Jan 15 (sq m) |
Net absorption, 12 months to Jan 15 (sq m) |
|
A |
15.2 |
12.7 |
1,131 |
-11,229 |
|
B |
17.4 |
13.1 |
-17,827 |
-24,645 |
|
C |
16.1 |
16.3 |
398 |
-6,899 |
|
D |
49.8 |
57.6 |
633 |
-3,440 |
|
Total |
14.8 |
11.8 |
-30,582 |
-67,270 |
Key market indicators, West Perth (aggregate)
|
Grade |
Vacancy, Jan 15 (%) |
Vacancy, Jul 14 (%) |
Net absorption, 6 months to Jan 15 (sq m) |
Net absorption, 12 months to Jan 15 (sq m) |
|
A |
6.8 |
5.8 |
-56 |
-453 |
|
B |
12.9 |
13.0 |
-310 |
-1,145 |
|
C |
13.4 |
7.5 |
-5,613 |
-2,876 |
|
D |
10.3 |
7.7 |
-380 |
164 |
|
Total |
10.9 |
9.2 |
-6,359 |
-4,310 |
More information available at www.propertyoz.com.au/officemarketreport