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News release


Critical office space shortage drives office strata sales of $5.3m at 41 St Georges Terrace

Demand continues with further $4m under contract

PERTH, 10 December 2012 – The critical shortage of CBD office accommodation and unrelenting tenant demand has been highlighted again with two strata office sales worth $5.3m at 41 St Georges Terrace.

Jones Lang LaSalle this week reported that a 305sqm, full-floor office suite at Level 6, 41 St Georges Terrace had sold for $2,750,000 to an owner-occupier in the resource industry.
Jones Lang LaSalle Negotiator, Andrew Langsford, said the sale price had exceeded expectations and followed an earlier sale to an investor for $2,550,000.
“Since these sales two additional floors have gone under contract for a total sum of about $4,000,000 showing strong sales momentum through the project,” said Mr Langsford.
He attributed the record outcome to the continuing dearth of prime office space in the city which has seen effective gross rents rise by 9.5 per cent over the past 12 months.
“Low interest rates and increasing rents are making owner-occupation a viable economic alternative to renting in the CBD and 41 St Georges Terrace is certainly reflecting this statistic.
“Owner-occupiers have the opportunity to not only secure a position on St Georges Terrace but most importantly control their occupancy costs in a rising market,” he said.
Jones Lang LaSalle Sales Manager Sean Flynn said that there was currently no other opportunity on St Georges Terrace for investors and owner-occupiers to buy a full floor office suite.
“The Perth office market currently has a 4 per cent vacancy rate and properties of this size rarely come up on the market, especially those that are full floors and strata-fitted.
“In addition, the property has benefited from a recent substantial refurbishment program including the installation of new floor-by-floor air conditioning, lifts and building security systems. Further to which this property’s proximity to two of the city’s largest redevelopment projects is sure to enhance long-term capital value.
“The $440 million Elizabeth Quay project is within 200 metres of the building and situated opposite is the former State Treasury building, which will undergo a $580 million construction and refurbishment program to house the Department of Justice and an Aman Hotel,” he said.
Mr Flynn added that the building presented limited additional opportunities to purchase fully leased floors, with Level 9 on offer for $1,600,000 representing a yield on asking price of over 8 per cent. Alongside this is the rare opportunity for investors to secure a St Georges Terrace shop front currently occupied by Suncorp Bank, both offered for sale by Offers to Purchase.​