Strong start to 2013 for office market: JLL

Perth’s commercial property leasing market has recorded a solid start to 2013, with more than 21,000 square metres of office space already committed and around 12,000sqm of pre-commitments in the works.

Research released today by Jones Lang LaSalle showed inquiry levels were down in the first three months of the year, but that drop was expected after two years of record take-up of office stock.

There were two major deals since the start of the year, with Shell leasing 15,911 sqm in the first tower to be built at King’s Square, and John Holland singing up for 5,099sqm in the second tower.

This was in addition to the 6,000sqm Aurecon has pre-committed to at 863 Hay Street.

Jones Lang LaSalle WA head of office leasing Nick Van Helden said sentiment was improving and it was likely that both the Perth and West Perth markets would remain relatively tight.

“The year has started with major oil and gas companies continuing demand for expansion space while the engineering sector tenants are disposing of excess space,” Mr Van Helden said in a statement.

Mr Van Helden said he expected rents and incentives to remain unchanged in the first quarter of 2013.

“Given much of the vacancy is partitioned and only available for short term sub-lease periods, rents and incentives should remain steady,” he said.

“Continued pre-commitment activity is likely as tenants look to consolidate and negotiate terms with more competitive accommodation options.”