Posted on Wednesday, October 26th, 2011 in by Matt Garmony
The Perth Central Business District (CBD) office rental market is experiencing a strong increase in net rental rates as the vacancy rate for premium and particularly A-grade office tenancies falls. Recent strong demand for office accommodation in the Perth CBD has seen the vacancy rate drop to a reported 3.6% which is critically below equilibrium and it is our understanding the current office projects under constructions will not ease this problem as the total floor space under construction is some 90% pre committed.
The licensed valuers at Garmony Property Consultants are seeing a flow-on effect in the fringe CBD office markets, particulaly West Perth and Subiaco, with increase demand and increases in office rental rates. We are of the opinion as the available space in these areas diminishes, the secondary fringe and inner suburban office locations will experience increased demand and a growth in rental values.
Our licensed valuers prepare numerous market rental valuations and determinations for fringe CBD and inner suburban office tenancies which can aid both owners and tenants with pre-leasing decisions or assist with market rental review disputes.
Contact one of our senior valuers for further information.