Perth precinct gets a new lease on life

Perth precinct gets a new lease on lifeA new-look Allendale Square in Perth promises to improve pedestrian links, provide premier retail and office accommodation, and contribute to the revitalisation of Perth’s CBD, says Mirvac’s group executive of Office, Andrew Butler.Mirvac’s vision for the extensive refurbishment of the Perth office icon – which was briefly the city’s tallest building – includes a remodelled lobby, new end-of-trip facilities, upgraded lifts and the conversion of level 31 to office space.Revived retail offerings will provide around 1600 sqm of space, and two retail podiums along St George’s Terrace promise to activate the precinct.Once complete, Allendale Square will feature more than 18 food, beverage and service outlets, including new ‘artisan’ retailers looking to expand into the Perth Market.Butler says the refurbishment will give the office tower a” new lease on life” and reflect the calibre of its tenants.”More than a premium commercial building, the transformation of Allendale Square will make a striking contribution to the city, appealing to Perth’s discerning business community,” Butler says.The refurbishment is expected to be complete in early 2017. Mirvac’s announcement provides a bright spot in an otherwise cloudy office market, with the Property Council’s latest Office Market Report revealing the CBD office vacancy rate in Perth has reached its highest level in more than 20 years.Office vacancy now stands at 21.8 per cent, compared with a national average of 10.4 per cent.However, Lino Iacomella, the Property Council’s executive director in WA, says Perth’s long cycle of new office supply has come to an end, with only 589 sqm expected to be added in the next six months. No further stock is expected until late in 2018.”The Perth office market is continuing to adjust to new economic conditions in WA and the key to the market’s future in the next few years will be the ability to diversify the tenant pool in the CBD, including industries like education and health services.”Older commercial buildings in the CBD will also come under consideration for residential conversion or even redevelopment to mixed-use precincts,” Iacomella adds.