19/04/2021 - 09:44

Positive signs for West Perth market

19/04/2021 - 09:44

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Green shoots are emerging in the embattled West Perth office market, currently the worst-performing office market in the country by vacancy rate.

Positive signs for West Perth market
87 Colin Street in West Perth is now 96 per cent occupied. Photo: LJ Hooker Commercia

Green shoots are emerging in the embattled West Perth office market, currently the worst-performing office market in the country by vacancy rate.

While the latest statistics found 22.1 per cent of office stock located in West Perth was vacant, the area may be starting to turn the corner. 

Following building upgrades, 87 Colin Street has transitioned from being nearly empty to 96 per cent occupied (representing 2,482 square metres) over the past 24 months, with one 104sqm tenancy remaining on the top floor.

In 2018, property investment firm Realside purchased the asset for $8.5 million in an off-market deal brokered by LJ Hooker Commercial Perth, which has led the asset’s lease campaign.

“Many tenants have realised through the pandemic that they aren’t CBD tenants and have been attracted back to quality West Perth assets,” LJ Hooker Commercial executive Jack Bradshaw said.

“High car parking ratios, ease of access and convenience for clients are several key factors which counteract the flight to centre.”

Additional West Perth deals by LJ Hooker Commercial in recent months include the sale of a medical facility at 100 Outram Street for $2.1 million, and the leasing of a standalone 150sqm character office at 31 Ord Street to a government minister.

Other recent property deals:

Record yield for childcare

The Sparrow Early Learning centre in Quinns Rocks has sold for $2.7 million, recording a yield of 5.36 per cent.

Burgess Rawson brokered the deal and said it was the sharpest yield ever achieved for a WA childcare centre.

The property, which is underpinned by a 20-year lease, was purchased by an undisclosed private investor making a bid prior to auction.

$4m Bentley office sale

Colliers International has settled the $4 million sale of an office located within the Bentley Technology Park.

The 931 square metre building was leased to listed company Swift Networks until 2023.

Colliers agents Tory Packer and Henry Vu negotiated a variation of lease, reducing Swift’s term.

The asset was sold to Advance Care, which plans to use the space as its head office.

Cottesloe site sells

A 744 square metre parcel of land at 533 Stirling Highway Cottesloe has been bought by an undisclosed local developer for $2 million.

The former petrol station site sale was brokered by Burgess Rawson on behalf of BP Australia.

The land does not yet have designated zoning but has been earmarked as a town centre, enabling it to be used for density development.


 

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