A DECADE ago few businesses seeking premises would have considered Subiaco a potential office location.
In 2003, however, Subiaco is a thriving hub of commercial activity. It is a trendy address and a sought after location for small to medium businesses looking to benefit from reduced outgoings and a lifestyle-business balance.
A recent FPDS Savills comparison of rents achieved in Subiaco with those of West Perth and the CBD revealed that rents achieved in 2002 for new, modern style office accommodation in Subiaco Centro was comparable to the grade A stock in West Perth and the CBD.
Asking rents of office stock within the Subiaco commercial precinct were recorded between $200/sq m and $250/sq m for tenancy options ranging from 90sq m to 250sq m located on Alvan Street, Centro Avenue and Roberts Road.
In comparison, the net face rents achieved in West Perth are generally between 200/sq m to 230/sq m, while in the CBD grade A buildings achieve a net face rent of between $185/sq m and $310/sq m.
While the rents may be comparable, the deciding factors for many businesses looking to relocate to Subiaco are the significantly lower parking costs and overall outgoings.
In 2002, West Perth car bays were charged at up to $140 a month, while CBD parking bays cost up to $425 a month in an A grade building. Subiaco’s parking space is let at a less painful $100 a month.
Blackburne and Joyce Real Estate commercial director Michael Milne said that in recent years Subiaco commercial space had punched through the $200/sq m barrier and was now comfortably achieving rents in the mid $200/sq m range.
Much of the suburb’s new commercial business profile has come on the back of the Subiaco Redevelopment Authority’s Subi Centro project.
Mr Milne said that, prior to the project, there had been no significant office development in Subiaco for a decade.
Since the construction of the first office building in the Subiaco Square, which now houses architect firm Hames Sharley, project managers Clifton Coney Stevens and Keysbrook Financial Services, the business world has come to view Subiaco in a new light, he said.
A variety of businesses is setting up shop in Subiaco, taking tenancies ranging from 150sq m to 500sq m.
Computer Sciences Corporation has led the exit out of the city, taking its 5000sq m requirements and placing its headquarters in design-built offices on the corner of Hay Street and Railway Road.
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