With the first of the new breed of Perth office towers at least 12 months away from completion, developers are transforming small city sites into boutique office blocks and reaping the rewards in the interim.
Much of the activity is in the city’s west end, with a 7,290 square metre office building under construction at 503 Murray Street now fully pre-committed, a further 4,800sqm office earmarked for 432 Murray Street, and plans to build about 8,000sqm of office space above the Country Road store at 307 Murray Street.
Hay Street’s Melbourne Hotel is also set for a revamp as part of plan to build a 13-storey office tower of 10,000sqm adjoining the Heritage-listed building.
Perman and Associates principal Bob Perman said developer Fairworld Holding’s decision to commence construction of a new A-grade building at 503 Murray Street last year without a pre-commitment had now been vindicated.
Together with Knight Frank, Mr Perman has signed engineering firm Parsons Brinckerhoff to a 4,620sqm lease and owners of Burrup Fertilisers, the Oswal Group, to a 2,670sqm lease in the building, which is scheduled for completion in February 2009.
“The success of 503 will be the catalyst for other new buildings in the immediate vicinity,” Mr Perman said.
Knight Frank director Ian Edwards said both tenants were rapidly expanding their operations and were keen to consolidate in that location.
He said Parsons Brinckerhoff was currently located in a number of buildings in Subiaco, while the Oswal Group was headquartered at 225 St Georges Terrace.
“The property is located just 50 metres from the intersection of Milligan Street and offered exceptional access to the CBD, public transport, Northbridge and West Perth and will tap into the flurry of activity and infrastructure proposed for the west end.” Mr Edwards said.
Of this, a further 4,800sqm of space is expected to come onto the market early next year at 432 Murray Street, opposite the Tiger Lil’s bar, when construction of a seven-storey office building is completed by Firststate Developments WA.
Primewest is also expected to redevelop the four-storey Murray Gardens building at 307 Murray Street on-spec, with up to 8,000sq m of new office space above.
