Property syndicator and developer Primewest has put the building at 619 Murray Street in West Perth up for sale, with agents at Colliers International expecting the boutique office asset to pull in more than $30 million.
The four-level building is fully leased to the federal government and is home to the Australian Federal Police.
The government has held the lease for more than 20 years, and exercised a further five year option this year, securing the building until at least 2017.
Colliers International institutional and investment services director Wayne Lawrence said the building was a standout opportunity in the tight Perth office market.
““Perth remains the country’s tightest office market, and West Perth is the outstanding non-CBD performer – it has a long-standing reputation as Perth’s premium boutique office precinct, it’s right on the doorstep of the CBD and the vacancy rate is consistently low,” he said.
“Space in West Perth is consistently in high demand from small to mid-cap mining companies and professional service providers, and that means you see very few full floor plates coming up for lease.
Mr Lawrence said the City of Perth was currently considering plot ratio changes for the site, raising the potential for a higher density development.
The changes would potentially boost the site’s permissible lettable area from 5,372 square metres to 8,058sqm.
“Once you take into account the potential plot ratio bonuses, that number could be even higher,” Mr Lawrence said”
“The possibility of further developing this asset to capitalise on available space and a strong market adds further appeal to what is already an incredibly appealing opportunity for buyers.”
An expressions of interest program will close November 1.
