Posted on BusinessNews.com.au
According to leading independent commercial property specialists, Sheffield Property, Perth’s office market is heating up – with the recent take up of high quality sub-lease space indicating a sustained improvement in the CBD and City Fringe commercial office market.
“The demand for sublease space has accelerated considerably this year,” said Sheffield Property Director of Leasing Roly Egerton-Warburton.
Mr Egerton-Warburton said tenant demand for quality fitted out premises, coupled with tenants withdrawing space from the market to accommodate their own expansion, had created a shortage of sublease opportunities and a shortage of fitted out options.
“The number of mining services and government infrastructure-related contracts has increased, which is having a positive knock-on effect with firms requiring office space immediately to accommodate their newly awarded projects,” he said.
“Sheffield have recently concluded a number of sub-lease transactions, including a lease to Power Ledger – a fast-growing tech start up business dealing in energy and blockchain trading, which took up 430sqm within The Palace at 108 St Georges Terrace.
Sheffield Property has recently been appointed to market a further 860sqm for sub-lease within the same asset, providing a fitted out and furnished solution for an incoming tenant.
“Level 28 of 108 St Georges Terrace is a highly impressive whole floor tenancy with an exceptional fit out and views across the city and Swan River,” said Mr Egerton-Warburton.
The agency is also finalising a further 7,000sqm of sub-lease deals, which are due to be executed by the end of the month.
“With quality sub-lease options diminishing, we are expecting to see continued improvements in net rent growth in the commercial CBD market,” he said.