Perth CBD office market still tight

PERTH’S office market remains the tightest in the world and is becoming more expensive, with the city now ranked 18th internationally on rental rates, according to a report from Colliers International. The CBD vacancy rate of 0.3 per cent is the lowest of the 172 office markets surveyed, for the third time running, while its average gross rent for A-grade buildings ($900 per square metre) places it ahead of all other Australian capitals. Brisbane was ranked sixth on vacancy rates, followed by Melbourne (18th), Adelaide (24th) and Sydney (26th). In terms of rental rates, Sydney came in 24th with an average A-grade gross rent of $770/sqm. Colliers International WA office leasing director Ian Campbell said in a statement that Perth faced at least another 12 months before new stock would come on line. “What is interesting to see is the growing gap between the Perth market and the other Australian cities, particularly Brisbane, which is enjoying similar economic conditions to us on the back of a resources boom,” Mr Campbell said. “Our development pipeline will see new supply emerge in 2009, however we do not expect Perth to see any major supply until 2012.” Emily Piesse