A REPORT by FPD Savills has estimated a 14 per cent level of overall vacancy in the CBD by the start of 2004. If another major development such as the Project Future 239 proceeds, this level could jump up to 16 per cent by 2006, it says.
Currently CBD vacancy rates in premium grade buildings stand at around 6.4 per cent and 10.3 per cent in A-grade buildings.
Across all grades the total vacancy rate is 11.6 per cent.
The vacancy level across premium buildings has almost doubled since July 2002, however the increase in space is mainly due to the movement of Western Mining from QV1 and will be eventually soaked up by Freehills’ requirements.
The FPD Savills CBD office market report says that the large levels of upcoming contiguous space in A-grade buildings is an area of concern, particularly for developers, with the exit of the Computer Sciences Corporation and the addition of the Woodside Tower and ‘Next’ – the building.
According to the report, if the Perth Convention Exhibition Centre tower goes ahead with committal from Ernst & Young, it is unlikely that any other major development will proceed.
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