Landlords in West Perth are moving to upgrade their buildings in the wake of increased vacancy, as tenants demand higher-quality amenities in a competitive market.
Commercial real estate agency CBRE said vacancy rates in B and C-grade buildings in the near-city suburb were at 26.8 per cent, compared with 5.7 per cent for A-grade premises.
At 1 Havelock Street, a recent refurbishment by building owner Ascot Capital comprised a full lobby upgrade and a refit of the second floor, as well as new end-of-trip facilities.
The entire building has now been leased.
Also in West Perth, owner Primewest installed a large end-of-trip facility at the IBM Centre at 1060 Hay Street, as well as upgrading the building’s lobby.
Mr Johnston said end-of-trip facilities were fast becoming a standard requirement to attract tenants.
“With soft tenant demand in the market, landlords are undertaking major building upgrades to renegotiate lease renewals with existing tenants while also targeting new tenants in the market,” Mr Johnston said.