Perth office tower for sale: Buyers tipped to capitalise on resurgent market
St Georges Terrace offering comes at critical point in CBD office market cycle, according to agents.
An ideally positioned 100% freehold boutique office tower in the city's most prestigious street has come to market via an Expressions of Interest campaign by exclusive selling agents John Williams and Sean Flynn, of JLL.
Originally constructed in 1989 and extensively upgraded in 2010, 8 St Georges Terrace in Perth's CBD has a total NLA of 4,586 sqm spanning 8 levels, with 17 car bays.
Situated in the heart of the legal precinct, 8 St Georges Terrace is in easy walking distance of the recently opened Five-Star Westin Hotel, award winning Cathedral Square, Elizabeth Quay and the Hay Street Mall retail precinct.
JLL's WA Managing Director, John Williams said that 8 St Georges Terrace is being offered to market at a critical point in Perth's office market.
"The Perth CBD is providing clear signs of improvement with vacancy steadily decreasing from a peak in 2016 to a current level of 21.4%. Given the lack of new supply, a continuation of tenants moving to the CBD from suburbs and increasing activity in the mining sector, demand for office space is forecast to remain strong," Mr Williams said.
"JLL Research is forecasting vacancy to reduce to below 18.9% by 2020 and deliver gross effective rental growth of 4.5% per annum over the next 10 years."
JLL's Director of Sales and Investments for WA, Sean Flynn said: "Following on from our highly successful sale campaigns for 45, 55 and 182 on St Georges Terrace, 6-8 Bennett Street in East Perth, The Optima Centre, 18 Parkland Road Herdsman and the recent off-market sale of 441 Murray Street we are expecting strong enquiry for this asset as buyers move to capitalise on Perth's resurgent office investment market.
"It is clear that both Perth CBD office assets are strongly in favour with a cross section of investors including offshores through to syndicates and we expect these buyer groups to show interest in the asset."
JLL Research shows the Perth economy has now begun its cyclical upswing with the State Government and private sector investing to transform Perth in the coming years. The rebound has led to the highest level of job growth in five years and has now translated into office demand, with net absorption in 2017 more than double the 25-year average of 17,000sqm. Positive momentum is expected to continue, with forecast gross effective rental growth of 4.5% pa over the next 10 years.
8 St Georges Terrace is a 3.5-Star NABERS Energy rated building and features a distinctive façade profiled to maximise its impressive outlook to the Swan River, Government House and Supreme Court Gardens. With flexible circa 600sqm floor plates, the building is customisable to meet a range of working environments. The potential for additional or alternate uses for the building includes strata office, boutique hotel, residential, education, childcare and health (STCA).
8 St Georges Terrace will be offered for sale via an Expressions of Interest campaign closing on Wednesday 5 September 2018 by 3pm (AWST).