02/11/2004 - 21:00

Full house for 1 Adelaide Terrace?

02/11/2004 - 21:00

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Woodside’s old headquarters at 1 Adelaide Terrace may be fully tenanted within a week, with several prospective tenants vying for space.

Full house for 1 Adelaide Terrace?

Woodside’s old headquarters at 1 Adelaide Terrace may be fully tenanted within a week, with several prospective tenants vying for space.

Industry sources say a lease is imminent as the Department of Health and B Digital both contemplate the building, which has been an overhang on the Perth leasing market for a number of years.

B Digital is seeking 3,200 square metres of space to house 450 staff, and has expressed a preference for 1 Adelaide Terrace.

B Digital manager of sales and services Steve Mitchinson said the company was keen on 1 Adelaide Terrace and was currently in negotiations with building owners ING.

“We have been open that it is our desire to move to that location and we think it is the ideal location for us,” Mr Mitchinson said.

The Department of Health is understood to be looking for a 7,500 square metre space and has narrowed its preferences to four sites: 1 Adelaide Terrace, 81 St Georges Terrace, 140 St Georges Terrace – formerly known as the AMP Building – and the Hyatt Centre at 187-123 Adelaide Terrace.

Any suggestions that 1 Adelaide Terrace will be pleasing to Baulderstone Hornibrook, which took over Woodside’s lease obligations for the eastern CBD site as a condition it entered into when it won the contract to build Woodside’s new headquarters. That lease runs until 2007.

Jones Lang LaSalle leasing agent Nick Van Helden said several parties had expressed interest in the building, and with the West Perth market tightening up, the CBD was becoming very attractive for larger tenants.

“It is becoming a very good option for large suburban-based tenants to come to the CBD because of prevailing incentive levels, larger floor plate size and the existence of pre-existing partitioning,” Mr Van Helden said.

“The market is extremely tight in West Perth and the CBD will experience a real net gain as tenants move from suburban areas into the CBD.”

CB Richard Ellis senior director of office services Andrew Denny said there had been a dramatic turnaround in the leasing market this year with tenants moving from West Perth and the suburbs to the CBD.

Tenants already in 1 Adelaide Terrace include the Department of Industry and Resources, with 7,000sq m, and Lycopodium with about 5,000sq m.

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