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WEST PERTH OFFICE
VACANCIES BY SIZE RANGE, NO. LISTINGS
Ray White Commercial continues to investigate vacant listings across the West Perth office market, while the Property Council of Australia (PCA) identified 55,047sqm of available stock, our count recorded a slightly higher number at 83,384sqm. This typically would be indicative of large range of smaller assets which would not be included in this count together with hidden sub lease space given the PCA’s nil count this period. While there continues to be a high proportion of availability in the smaller suites across West Perth, this year we have seen a greater spread across all size ranges up to 500sqm. 23.85% being sub 149sqm compared to 30.0% 2 years ago, 19.72% in the 150-249sqm size range and 32.57% for 250-499sqm up from 26.81% last year. Professional and technology tenants continue to be the major enquiry for these smaller suites including accounting, law and financial services.
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2022 has been an outstanding year for the Perth office markets, particularly in comparison to the south-eastern states with results in WA were only rivaled by Queensland markets. It has been both WA and Queensland which enjoyed strong gains in population growth during the COVID period while both markets contribute significantly to the national GDP with WA leading the charge underpinned by mining and construction sectors. It’s the strong fundamentals of the economy which has led to the Perth office markets recording more take up than most of the country and improvements to the overall vacancy situation. While new supply has been difficult for the Perth CBD, continued additions of stock will hamper quick recovery in terms of vacancy however across both markets we have seen strong rental growth which will continue given the high inflationary environment we are in. Investment activity may slow in 2023 and feature higher yields given the increased finance costs with domestic funds likely to capitalize on affordability of large assets in Perth and prospective income gains in the short term.
