Office building in Leederville, Perth sells for the first time in 22 years
A two-level office building in the heart of the Leederville’s commercial and entertainment precinct demonstrates confidence in the commercial property market in Perth, Western Australia.
PERTH 22 July 2020 – A private investor has capitalised on a boutique office building at 642 Newcastle Street, Leederville in Perth, Western Australia just 14 days after the asset was offered to market.
JLL’s Sales and Investments Director (WA) Tom Nattrass and Sean Flynn sold the building on behalf of a local private investor for the first time in 22 years.
The two-level office building of 388.7sqm is situated on a 516sqm site in the heart of Leederville’s tightly held retail and commercial precinct, just off Oxford Street.
The property quickly attracted strong attention from owner-occupiers and investors alike leading to a sale despite a very uncertain environment.
Mr Nattrass said, “The property was taken to market on 31st March 2020, in the midst of the COVID-19 pandemic here in Perth, yet against the odds a contract was agreed just 14 days later. Both parties acted decisively and despite a number of counter offers the contract was negotiated within a matter of hours.”
The property benefits from a prominent location on the main thoroughfare of Newcastle Street in the heart of the Leederville commercial precinct, only 2.5 kilometres from the Perth CBD and less than 200 metres from the bustling food and beverage strip.
“642 Newcastle Street in Leederville is a great asset that will lift in value into the future and in years to come will lend itself to a redevelopment. This sale is testament to the property’s strong fundamentals,” said Mr Nattrass.
Mr Flynn said, “Freestanding inner metropolitan office buildings with an affordable price point, convenient off-street car parking, high exposure, street presence and proximity to a recognised café strip don’t come up very often, and the response we received from potential owner occupiers in particular was very strong.”
“It’s at times like these when we as agents really earn our commissions and providing the correct advice prior to going to market is as important as the sale process itself. In this environment it’s important to know in the first instance whether to go to market and there has to be a strong case to market an asset. That might be the unique set of characteristics illustrated by 642 Newcastle Street or something else that transcends the market uncertainty, such as a very strong, reliable and secure income stream,” Mr Flynn said.
“Right now if you haven’t got a strong argument to prosecute, the chances of success are low and you’re more likely to be doing a disservice to your seller and their property. So the advice in many cases is to hold off and ensure that when you do bring your property to market, the conditions are right for that asset” he added.
A large amount of money is being invested into the location surrounding the asset. Last month a multi-million dollar redevelopment was announced for the Leederville Hotel owned by FJM Property, who are planning a large scale redevelopment of the hotel introducing a multi-venue food, retail and entertainment hub for Leederville in a new laneway precinct. This adds to the previously announced redevelopment of the hotel’s carpark site into a new A Grade office building for the ABN Group.
With multiple spaces, an incredible food offering and entertainment refurbishment, Leederville is set to engage and bolster new businesses and create a community making it a highly desirable location for businesses.
“The development activity in Leederville coupled with its positive market fundamentals will allow the buyer to take a strong position in this boutique market,” Mr Nattrass concluded.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 94,000 as of March 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com