Sub-lease office space in hot demand
According to leading independent commercial property specialists, Sheffield Property, Perth’s office market is heating up – with the recent take up of high quality sub-lease space indicating a sustained improvement in the CBD and City Fringe commercial office market.
“The demand for sublease space has accelerated considerably this year,” said Sheffield Property Director of Leasing Roly Egerton-Warburton.
Mr Egerton-Warburton said tenant demand for quality fitted out premises, coupled with tenants withdrawing space from the market to accommodate their own expansion, had created a shortage of sublease opportunities and a shortage of fitted out options.
“The number of mining services and government infrastructure-related contracts has increased, which is having a positive knock-on effect with firms requiring office space immediately to accommodate their newly awarded projects,” he said.
“Sheffield have recently concluded a number of sub-lease transactions, including a lease to Power Ledger – a fast-growing tech start up business dealing in energy and blockchain trading, which took up 430sqm within The Palace at 108 St Georges Terrace.
“Sheffield also completed a sub-lease transaction of 600sqm with a national law firm within 108 St Georges Terrace. Both spaces provided a turnkey solution for tenants seeking whole-floor fitted out premises for immediate occupation.”
Sheffield Property has recently been appointed to market a further 860sqm for sub-lease within the same asset, providing a fitted out and furnished solution for an incoming tenant.
“Level 28 of 108 St Georges Terrace is a highly impressive whole floor tenancy with an exceptional fit out and views across the city and Swan River,” said Mr Egerton-Warburton.
The agency is also finalising a further 7,000sqm of sub-lease deals, which are due to be executed by the end of the month.
“With quality sub-lease options diminishing, we are expecting to see continued improvements in net rent growth in the commercial CBD market,” he said.