The Department of Communities has secured almost 8,000 square metres of space at 130 Stirling Street, in a 10-year leasing deal brokered by Sheffield Property.
The Department of Communities has secured almost 8,000 square metres of space at 130 Stirling Street, in a 10-year leasing deal brokered by Sheffield Property.
The lease includes two options to extend and was negotiated by Sheffield Property joint managing director Digby Sutherland.
The Department of Communities will occupy 7,910 square metres of space over three levels at 130 Stirling Street, located on the corner of Stirling and Aberdeen Streets in Perth.
The department has two main locations; a base in East Perth and in Fremantle, where part of the agency is located in the newly built Kings Square.
The property is owned by Singaporean developer and investor Hiap Hoe Group, which purchased the office building from Charter Hall in 2014.
Following the completion of a $5 million refurbishment of the building, which is managed by Sheffield Property, the department is expected to shift to its new premises in late 2021.
The revamp includes the refurbishment of all vacant floors within the property at 130 Stirling Street, as well as the addition of sustainability initiatives such as electric vehicle charging stations.
“This is a significant transaction for the Perth market and an outstanding result for our client, which has made a substantial investment in enhancing the building and its sustainability initiatives – including the installation of a new $1 million end of trip facility,” Mr Sutherland said.
“The estimated 750 staff who will be based at Stirling Street will also deliver considerable economic benefit to the surrounding businesses.”
The leasing deal at 130 Stirling Street marks the second state government office commitment to the area in the past month - in December, Sheffield Property negotiated a 7,800sqm lease for the Department of Primary Industries and Regional Development, at 1 Nash Street.
“The commitment by the Department of Communities, together with the lease to the Department of Primary Industry and Regional Development concluded last month, reinforces the appeal of this emerging CBD office precinct,” Mr Sutherland said.
“This is an area offering quality A-grade office buildings with large floor plates – 3,000sqm in the case of 130 Stirling Street – minutes from the heart of the CBD, with outstanding public transport and pedestrian links.
“It’s fair to say this is an area very much on the radar of significant corporate tenants seeking A-grade office space in a location where amenity and access is in place but quality space is more affordable.”
On the other side of the city, Family Zone Cyber Safety has secured a 1,090sqm space within 45 St Georges Terrace.
CBRE office leasing associate director James Phelan negotiated the five-year lease deal on behalf of property owner Redhill Partners, at a rental of $495 per square metre (net).
Family Zone’s new offices will be located on the CBD building’s third floor, which features a speculative fitout.
“This tenancy was just one of few fitted options over 1,000sqm in size in the Perth CBD office market. The new fitout offered an appealing layout as well as flexibility for minor modifications that suited Family Zone,” Mr Phelan said.
“This tenancy was on the market for less than eight weeks, which is an exceptional outcome for the landlord, underlining the success of the building’s speculative fitout strategy.”
The building is 95 per cent leased with a weighted average lease expiry of five years.
