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…while the offices slowed

AFTER an active start to 2000 for the office market, the latter half was extremely quiet in CBD and West Perth sales.

Chesterton International managing director Graham Iddles said investors spent five or six months fence sitting due to uncertainty over GST, oil, the dollar and interest rates.

“In fact, the failure of a number of high profile CBD offerings to sell – Central Park, the Reserve Bank and a half share in Allendale Square being prime examples – would suggest that the market was totally dead from June onwards,” Mr Iddles said.

However, the dead market scenario was not really the case – sleeping perhaps but not dead.

“Potential buyers were there, but they were cautious – and the sellers were under no pressure to accept offers they believed were less than true value.”

Mr Iddles believes if any of these buildings were offered early in 2001 they would receive more interest and more competition from buyers.

“Yields remain excellent, office vacancy rates are low and our research indicates they will go even lower. It all augurs well for a positive year in CBD and West Perth sales,” he said.

“We look forward to 2001 with great confidence.”

Mr Sorgiovanni said CBD rental growth was particularly strong during 2000 with Perth’s four premium buildings achieving rents rise above $400 per square metre.



Top Sales across WA sectors



CBD Office

* May Holman Centre (32 St Georges Tce) JUNE. Sold to Glenmont Properties for $23m.

* Markalinga House (251 St Georges Tce) JUNE. Sold to NAB Superannuation Fund for $21.3m.

* Parmelia House (191 St Georges Tce) JANUARY. Sold to Australian City Properties for $20m.



West Perth Office

* Gold House (619 Murray St) MARCH. Sold to Glenmont Properties for $9.25m.

* British Borneo House (40 Kings Park Rd) NOVEMBER. Sold to Sanori Developments for $9m.

* Scott House (46-50 Kings Park Rd) JULY. Sold to Property Bank Australia for $8.95m.



Retail

* Forrest Chase (Myer, CBD) JANUARY. 50% sold to ISPT Fund No. 2 for $56.98m.

* Gateways S.C. (Beelier Drv, Success) NOVEMBER. Sold to Perron Group for $37.5m.

* Thornlie Square S.C. (Spencer Rd, Thornlie) JANUARY. Sold to York Capital for $21.75m.



Industrial

* Steelmark Eagle & Globe (9 Bradford St, Kewdale) MAY. Sold to Sansom Nominees for $9.475m.

* Spicers Paper (78 Mallard Wy, Cannington) JANUARY. Sold to Guardian Property Trust $7.25m.

* Wesfarmers Distribution Centre (Jackson Rd, Bassendean) MARCH. Sold to Private Investor $5.7m.



Source: Jones Lang LaSalle

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