Knight Frank’s latest CBD research report showed the fall in vacancy levels was accelerating and is now spreading to second tier CBD properties and fringe office markets like West Perth.

The report said that quality, A-grade buildings in West Perth such as Halcyon House at 1 Campbell Street are now seeing the strongest levels of leasing activity for several years.

At a glance:

• Almost 2200 square metres of space leased in Halcyon House in recent months
• Recent deals include five year leasing deals with blue chip tenants RAC and Atlas Professionals while rail haulage group WATCO recently arranged a four-year lease 
• Knight Frank says decreasing vacancy rates in Perth CBD are having a flow on effect in fringe office markets like West Perth

Recent deals in the modern, A-grade building, owned by the Woss Group, have seen new, five year leasing deals with blue chip tenants RAC and Atlas Professionals over Levels 1 and 4 respectively, while rail haulage group WATCO has taken a four-year lease over part of the Ground Floor.

Knight Frank Partner – Joint Head of Office Leasing, Greg McAlpine, said almost 2200 square metres of space had been leased in Halcyon House in recent months and only Levels 2, 3 and part of the Ground Floor were still available.

He said the building’s ideal location overlooking Harold Boas Gardens, its easy access to major road systems and proximity to the West Perth train station, along with its high level of finishes and security had made it an extremely popular choice.

“The market is certainly turning, and it is buildings like Halcyon House that will be snapped up first, followed by other A-grade buildings and quality boutique stock,” McAlpine said.

Knight Frank’s Sallese Wilmot-Barr, who also worked on the Halcyon deals, said the West Perth vacancy rate was slowly falling with those buildings that had upgraded or provided new facilities like EoT now emerging as the front runners.

She said the traditional cycle would likely see some tenants return to West Perth from the CBD as rents in the city started to climb, however they would still be looking to a level of amenity similar to what they had in the CBD.

Similar to this:

Chevron renews and expands at 256 St Georges Terrace Perth

Businesses looking for key extras in Perth and West Perth office leasing market

Perth CBD leasing market looks healthier than official figures might suggest