Triggered by development, Perth city has made a noticeable shift towards what is now known as the ‘west end’ during the past 20 years.
Triggered by development, Perth city has made a noticeable shift towards what is now known as the ‘west end’ during the past 20 years.
And if new projects proposed in the area go ahead, that neck of the woods will be able to claim the tag of the city’s new heart as it becomes even more densely populated by offices and CBD workers.
The western end of town was not always in demand, and according to CB Richard Ellis senior director Andrew Denny, when QV1 was completed in 1991 not one professional service provider firm was a tenant in the building.
“When they built QV1, everyone thought it was so far west, but now that part of town is absolutely where people want to be, and the vacancy rate in that part of town is negligible,” Mr Denny said.
“The western end of the CBD is the resources heart of town, with Chevron, Woodside, BHP, Apache and several major engineering firms also located there.
“QV1 also has more major legal firms than any other building in Perth, with Freehills, Clayton Utz and Allens Arthur Robinson all in the building.”
There are currently four private major development proposals for Perth’s CBD, none of which has yet announced anchor tenants, but all which have the potential to tilt the balance of workers in the city.
They are: Luke Saraceni with Raine Square; Multiplex and the Griffin Group with 125 St Georges Terrace; Peter Laurence’s Pivot Group with Century City at 100 St Georges Terrace; and Hawaiian and Multiplex for the Bishops See precinct, at 225 St Georges Terrace.
WA Business News last week reported that Rio Tinto subsidiary Hamersley Iron is understood to be in the final stages of negotiation with privately owned Hawaiian Management Group and Multiplex to become the anchor tenant for the proposed Bishops See development.
The proposed development consists of two towers, one 18,000 square metres, and the other 46,000sq m.
Pivot has also begun construction on the retail component of 100 St Georges Terrace, and is understood to be going ahead with the office part of the development.
Mr Denny said that, with develop-ment sites running out in the western end of town, for the first time ever, and spurned on by the new rail line, the CBD was branching northwards.
“With 140 William Street [above the underground train station] going ahead, and the proposal for Raine Square as well as a couple of other buildings, I think we will see development up that end of town,” he said.
“I think we will see some growth in that northern part of the CBD.”
Burgess Rawson managing director Geoff Potter said the city was trending west due to newer buildings in that area of town, which attracted higher paying clients.
“The availability of land and active construction has been in the western end, and the trend has not been towards Adelaide Terrace, which has moved towards residential,” Mr Potter said.
“But it hasn’t always been that way. QV1 was offering massive attractions to get tenants in originally.
“Tenants are being driven by space needs and the quality of the building, and the days, for example, of lawyers being close to the courts are over.”
Knight Frank associate director Wayne Lawrence said there was a perception that everyone wanted to be in the western end of town, but that was driven by development rather than tenants.
“There is the potential for rents and value to increase in the area due to the increase in activity and infrastructure,” Mr Lawrence said.
He added that the increase in office space and workers in the western end has led to a pick up in retail along the west end of Hay and Murray streets, as retailers acknowledge the move in traffic.
“What is needed is a re-weighing of development east, but that isn’t going to happen,” Mr Lawrence told WA Business News.
“East Perth, which begins at Victoria Street, is definitely considered an inferior office location, and has no real future from an office point of view and is heading towards being a residential area.”
