CBD tenancy positive
Property group Knight Frank is expecting a recovery in the CBD leasing market on the back of a resurgent resource sector. Take-up rates are predicted to improve for all grades of office building for the first time in many years.
Knight Frank sales director John Corbett said many investors and finds were now refocusing on the CBD office market.
“There is strong potential for capital and rental growth in the office market and well-leased, well-located buildings will most certainly be in demand,” he said.
Knight Frank asset services director Ian Edwards said the current resurgence in the CBD leasing market was an indication of how dependent the property market was on the resource sector.
“Vacancy rates have turned around faster than expected due to a number of new and expanding tenants in the market,” Mr Edwards said.
“We will see a downward trend in vacancy rates across all grades for a few years, and that should see some potential rental growth.”
Knight Frank has predicted that most sectors of the property market will perform well in the next 12 months, based on the strong WA economy, low interest rates and healthy competition.