Perth CBD Office Figures Q1 2024

Key Points:

• WA’s economic outlook remains positive but is forecast to slow due to a combination of softer commodity prices and the impact of higher interest rates on consumption.
• CBRE’s leasing enquiry volumes in the CBD had a slight rebound from a relatively quieter 4Q23, with total leasing enquiry volume of c.77,100 sqm in 1Q24 (+74% q-o-q , -35% y-o-y) .
• Lower enquiry volumes in 2H23 resulted in slowed leasing activity in 1Q24 with c.6,200 sqm of new leasing volumes (transactions ≥ 500 sqm), down 74% y-o-y.
• Prime CBD net face rents held steady q-o-q at $684/sqm (+4.4% y-o-y). Secondary net face rents were also unchanged q-o-q at $461/sqm (+1.2% y-o-y) in 1Q24.
• Capital Square Tower 3 (~13,700 sqm) is scheduled to complete in 2Q24. A further c. 26,000 sqm is scheduled to become available in 2024 as refurbishments at QV1 and 186 St Georges are completed.
• There were no office transactions in Perth’s CBD in 1Q24.
• Prime indicative yields increased 8bps q-o-q at an average of 7.26%, with secondary yields also unchanged q-o-q at an average of 8.00%.