Sydney, 7 November 2013- The completion of Perth’s newest office building has been welcomed by a rejuvenated CBD leasing market, with the first tenants now in place at DMG Australia’s 1008 Hay Street and a further three in negotiations to secure premises in the prime west end address.
The leading Perth-based design and construct group wrapped up the development of its first CBD project last month, with the $24 million boutique office building adding a total of 3,113sq m of quality commercial space to the city’s stock.
DMG Australia, a specialist practice focused on the design and construction of residential, commercial and industrial facilities, took on development of the building on behalf of a syndicate of private investors.
The building’s first tenant, resources investment firm Verona Capital, moved into its new premises last month and has settled in to a 430sq m tenancy occupying the whole of the seventh floor.
While 1008 Hay Street had been the subject of tenant enquiry since the launch of a leasing campaign earlier this year, DMG Principal Lindsay Allen said the A-Grade building – the only new office development to be completed and available for occupation in 2013 – had seen a significant increase in activity in recent weeks.
“In those past few weeks we’ve seen the Federal election and a change of government, which delivers more certainty to markets and provides impetus for tenants considering a move,” he said.
“At the same time, we’ve completed work on 1008 Hay Street and opened the doors for business, and all the benefits of that west end location and the quality of the build are there to see – a unique modern design offering great views and natural light, minutes from both the City Link and Elizabeth Quay developments, and a highly visible location with signage opportunities.
“The response to that opportunity has been very strong, with three potential tenants entering into discussions since the start of this month alone.”
The leasing campaign for the eight-level building, located on the corner of Hay and Elder Streets, is being conducted by joint agents CBRE and Jones Lang LaSalle.
CBRE Leasing Director Lachlan Lewis said the CBD leasing market had seen a distinct shift in sentiment over the past month, with 1008 Hay Street the focus for a number of tenants on the hunt for new office space.
“We have quite clearly seen the overall market move from a negative mindset and a holding pattern to a positive one, and we have seen a good deal of increased interest in this building – leasing activity has improved across the board and we are seeing the big end of town coming back out to play,” he said.
“We have taken several prospective tenants through the building over the past four weeks and are negotiating terms on potential premises as a result.”
Mr Lewis said prospective tenants inspecting the building had been impressed with the features on offer.
They include double glazing, flexible air conditioning configuration to suit a variety of tenant accommodation formats, louvered sun shading at ceiling level for tenant comfort, a perimeter terrace on level eight and a design that provided natural light through the north, west and southern facades.
The building also offers two levels of car parking and end-of-trip facilities including showers, bike storage and lockers. The potential to secure corporate branding in the building’s light box had also proven a drawcard.
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