Perth CBD leasing market on the move

WHILE government departments, resource companies and several mid-sized professional services firms currently look for new space, tenants are in no mood to rush and as a result Perth’s CBD leasing market is moving at a slow pace.

One of the bigger CBD leasing deals signed in the last six months is the recent move by Hamersley Iron to take 2,000sqm in 219 St Georges Terrace.

The resources giant had been looking for additional space since the commencement of a new mining project at the end of 2002, seeking additional space on top of the extra 1,800sqm it leased in 1 Mill St earlier in December 2002.

Hamersley Iron spokesperson said the company would lease two floors in the building until early 2007, as part of the company’s normal operations.

He said the company had no further plans to seek any extra space.

The 2,000sqm leasing deal is part of a total of 5,000sqm Telstra is subletting in the 219 St Georges Terrace building.

The remaining 3,000sqm of office space are understood to be currently subject to negotiation with an unidentified engineering company.

Another tenant on the move is BDO chartered accountants which has, after a long period of deliberation that dates back to early 2002, recently signed up for 1,180sqm in 256 St Georges Terrace.

The rapidly expanding firm has grown out of its current 900sqm in 267 St Georges Terrace and will move into its new A-grade location in September after Marshall Kusinski Design Consultants has revamped the organisation’s new eighth floor offices.

BDO business advisory services partner Rob Casamento said contiguous space over 1,000sqm was difficult to find in the Perth CBD market.

Mr Casamento said there was not much good CBD space (more than 1,000sqm with natural light and good access) on the market that was competitively priced and offered competitive incentives.

Other law and accounting firms still examining their space options include Deacons, Jackson MacDonald, Corrs Chambers Westgrath, and  Delloitte Touche Tohmatsu.

Government departments are also still in extended deliberations.

The Western Australian Tourism Commission, which is looking for 3,000sqm to consolidate its staff, is in leasing discussions with both Quayside on Mill and 140 St Georges Terrace.

The Department of Veterans’ Affairs, which requires 4,000sqm, and the ABS, which requires 5,000sqm, are both in discussions with short-listed buildings, however any leasing decision is not expected until the end of the month.

The Bureau of Meteorology is also planning a shift from 1100 Hay Street and is in the market for 2,500sqm.

According to industry sources, BHP Billiton may no longer be in the market for new digs, deciding instead that it is more economical to stay put. Earlier in the year BHP had called for expressions of interest to lease at least 7,000sqm.

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