Tenants lured by incentives

BUILDING lease incentives have reached 30 per cent in some CBD buildings, a level that has not been seen since the early 1990s, according to Perth property pundits. 

Tenant advocate Digby Swale said that, during the past six months, landlords with big gaps to fill were adopting an aggressive approach of using above-market incentives to secure major tenants.

FPD Savills Graham Postma said there was evidence of some A and B-grade buildings on the market with up to 30 per cent incentives.

Property Resources Consulting managing director Charles Kellet said that while the general market level was at 20 to 25 per cent, he was seeing incentive levels of 25 to 30 per cent.   

WA Business News understands that international miner Iluka Resources and banking group Rothschild are to join Jackson McDonald in their relocation to the former AMP building.

Also expected is an announcement by the Department of Environment of the location of its new headquarters, as it consolidates the Water and Rivers Commission and the Environment Protection Authority arms into a single building.

Colliers International leasing director Ian Campbell said the last quarter had been more active in the leasing market with even B-grade buildings losing tenants to A-grade buildings.

“The B-grade market will have to have a look at their stock and see what they can do to attract those tenants back,” he said.

Also on the look out for tenants is property developer Multiplex, which is nearing finalisation of its development application for the Westralia site and is understood to be in discussions with resource group Worley to anchor its office development.

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