17/11/2011 - 14:10

Perth cements spot as strongest office market

17/11/2011 - 14:10

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Perth cements spot as strongest office market

Perth’s office market has recorded the fifth strongest annual rental increase across 81 markets worldwide and is the best-performing in Australia, according to new research released by Jones Lang La Salle.

Jones Lang La Salle’s quarterly global office index showed internationally in the third quarter of 2011, office rents rose by 8.2 per cent since Q4 2009.

Demand from the commodities sector, has sent rental growth rocketing in Perth, however, with a jump of 26.9 per cent moving Perth up to fifth on the global list.

“Perth moved to the front of the rental pack in Australia in Q2/2011 and maintained that position in Q3,” Jones Lang La Salle’s head of leasing, Kevin George, said.

“The demand from resource and resource-related tenants continues to drive vacancy down and rents up in the Perth CBD.

Mr George said along with Perth, Sydney was also the strongest performing Australian market.

“Despite persistent volatility in equity and bond financial markets and a growing consensus that global growth is slowing in 2011 and into 2012, the pace of recovery accelerated in Australian office markets during Q3,” Mr George said.

Mr George said the Australian economic outlook for 2012 remained strong, which would support office demand across all markets.

“Clearly the volatility experienced in global financial markets, if sustained, will impact office markets,” he said.

“But we are expecting the boom in the mining sector will start to flow to the finance and professional services sectors in Sydney and Melbourne through increased M&A activity, initial public offerings and capital raisings.”

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