Commercial office rents in Subiaco are said to be matching, and in some cases rivaling, rents for prime space in West Perth as businesses line up to get a piece of the Subiaco lifestyle.
Commercial office rents in Subiaco are said to be matching, and in some cases rivaling, rents for prime space in West Perth as businesses line up to get a piece of the Subiaco lifestyle.
CB Richard Ellis research analyst Michael Olsen said prime rents in Subiaco were currently in the range of $230 to $280sq m with new developments and those currently under construction attracting tenants prepared to pay up to $315sq m.
Hawaiian Property Group’s The Colonnade has already acquired expressions of interest, prior to development approval, for slices of the almost 5,500sq m of potential commercial space over levels one and two.
Peter Gibbons, Hawaiian general manager strategic advisory and investments, said an application would be submitted next month once existing tenants had been consulted.
“We’re very confident about finding suitable tenants for this high quality retail space. Rates would be concurrent with West Perth and Perth but we would have to take into account any refitting costs,” Mr Gibbons said.
Knight Frank associate director office leasing, Greg Thurston, attributes the Subiaco rent rate rise to different factors including demand outweighing supply of office space, commercial investment returns growing strongly, the increasing popularity of “Subi Centro” commercial/lifestyle hub and the close proximity of the train station.
“Four years ago I noticed rates were a good $200sq m, now its $260sq m and approaching $300sq m,” Mr Thurston said.
“Subiaco is the most desired office niche because it is the only fringe CBD location with complete commercial support structure in its train station, specialty stores, cafes/restaurants, supermarket, cinema and theatre.”
Space soon to be snapped up will be level 3, 1 Outridge Crescent, Subi Centro, that advertising agency 303 is vacating in June. The company moved out of Northbridge four years ago into Karringal, Subi Centro as part of a downgrade because its original space was too big for its staff of 30.
303 director Jim Davies said it is moving again but this time “upgrading” to the Tempo building next-door to cater to the company’s growing staff of 60.
“We want to move away from the traditional ad agency and focus more on direct marketing, interactive and brand strategy work and this new space will allow us to more closely align people with project teams,” Mr Davies said.
Not-for-profit group Diabetes Australia has also just announced its planned move from East Perth to Subiaco in June.
The new premises at Level 3, 322 Hay St covers 650sq m and was purchased for under $1.3 million with a Lotterywest grant.
Diabetes Australia WA chief executive Liz Kerrigan Benson said the group had spent two and a half years searching for the “right property” within five kilometres of the CBD and had found all of its requirements in Subiaco.
“The new premises will be a state-of-the-art centre incorporating a member’s resource room, on-line access and individual consulting rooms for visiting specialists,” she said.
Giorgi Group managing director Guido Giorgi said the property developer was very busy catering to current demand and noticed Subiaco buyers are mainly advertising agencies, financial planners, accountants, graphic designers, engineers and project managers.
The company has sold all of the 29 titles available in its giant 6000sq m development at 431 and 435 Roberts Road and Mr Giorgi said all its asking prices were met, reflecting in particular a strong market need for office strata titles in Subiaco.
