The next wave of office developments in West Perth is about to begin, with the City of Perth dealing with a number of new development and building applications.
West Perth is also in need of new stock, as the vacancy rate hits 0.4 per cent and A-Grade rents nudges $500/square metre.
Swanhill Enterprises Pty Ltd, part-owned by the Di Latte family of prominent Belmont-based group Diploma Construction, lodged plans for a nine-storey office project in the area last week.
The proposed 130B Cliff Street project will comprise a dining tenancy and 68 car bays.
Council has also received plans for a new mixed-use development at 37 Colin Street, consisting of basement and ground floor parking, three levels of commercial space, and three levels of residential. The 336sq m site with a single-storey house was bought by Synergy Property and Development Co for $1.75 million last year.
Meanwhile, Harvey Norman is seeking a building license for the first stage of its landmark $500 million redevelopment of City West on Railway Street.
Positioned on the former Parry’s Carpet Warehouse site, the four-storey, 8,000sq m office building will be home to mining group Macmahon Holdings when complete later next year.
Harvey Norman is seeking tenant pre-commitment for a second office complex on the site of more than 30,000sq m, while plans for a third tower of up to 20-storeys above its namesake store have been mooted.
WA Business News reported last month that office rents in West Perth had reached a new milestone, with 300sq m of refurbished B-grade space leasing for a record $475/sq m. Until recently, B-grade space was leasing for between $300/sq m and $375/sq m, and A-grade space for between $410/sq m and $475/sq m.
A two-storey A-grade office building at 38 Ord Street, under management by Multiplex, may also fetch a new record shortly with $550/sq m on rent review.
CBD office rents are currently sitting at between $500 and $560/sq m for A-grade buildings, and $450/sq m to $490/sq m for B-grade buildings, according to Colliers.
