Perth, 1 July 2014 –A new health and medical services precinct has been created in Herdsman following a recent series of lease commitments.
In the latest deal, Next Health has committed to a seven-year lease over a fully refurbished building at 29 Walters Drive.
CBRE Senior Negotiator Colin Gilchrist negotiated the lease, which involves the entire 1,100sqm building. Next Health, a subsidiary of the MedHealth Group of Companies, has committed to an annual rental of $420,000.
It is the latest win for the landlord following the successful leasing of neighbouring building at 435 Scarborough Beach Road to high profile tenants Johnson & Johnson (1,870sqm) and St John of God Pathology (2,115sqm).
Combined the deals have created a new health and medical services precinct in Herdsman.
“The owners of Walters Drive showed strong resolve and commitment given the softening leasing market conditions to push ahead with the full building refurbishment without any tenant commitment in place,” Mr Gilchrist said.
“We were able begin our leasing negotiations with the tenant throughout the back end of the building refurbishment, which allowed for alterations to the base building and services to incorporate the incoming tenants specific needs with regards to their planned layout.”
Mr Gilchrist added; “This is a fantastic outcome for the owner in the current leasing market and highlights the benefits landlords can derive by proactively repositioning buildings which are presenting as a little tired by undertaking full refurbishments.”
The Walters Drive building provides generous onsite parking bays and corporate building signage. The upgrade involved new mechanical services, bathrooms including end of trip facilitates, ceilings, new generation lighting, staff breakout areas and new landscaping.
Mr Gilchrist said CBRE had been involved in more than five office deals over 1,000sqm in the last 12 months in Herdsman.
He linked the tenant interest in Herdsman to the cost competitiveness of the market relative to areas such as Subiaco and West Perth.
“The Herdsman market is also benefitting from the increased amenity being afforded by new food / coffee shop openings and from works associated with the Scarborough Beach Road Activity Corridor Framework, which is creating increased on street parking, a significantly improved streetscape and road safety” Mr Gilchrist said.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.