Perth CBD Office Figures Q1 2025

Key Points:

• 1Q25 enquiry volumes were below the same period last year with c.60,000 sqm of enquiries received compared with c.77,000 sqm during 1Q24. The number of enquiries, however, was strong at 128 compared with 112 during 1Q24.
• Gross new leasing volumes picked up to c.17,000 sqm (new deals ≥ 500 sqm). This was a significant y-o-y improvement on the c.6,000 sqm recorded during 1Q24.
• Prime CBD net face rents increased to $710 (+3.8% y-o-y) and prime incentives have remained steady averaging 47%.
• Net absorption of 25,186 sqm recorded during 2H24 (20-year six month average c.10,000 sqm), assisted by Fortescue’s take-up of c.22,000 sqm at 256 St Georges Terrace.   
• Net supply totalled 21,288 sqm, primarily due to the refurbished 256 St Georges Terrace space being added (pre-committed by FMG).
• Total vacancy rate decreased to 15.1% from 15.5% at 1H24. Prime vacancy stands at 12.3% and secondary vacancy stands at 20.2%.  
• No investment transaction was recorded during 1Q25 however, several office investment opportunities are expected to come to market from Q2.
• Prime indicative yields increased by 7 bps q-o-q to an average of 7.3%. Secondary midpoint yields increased by 37 bps q-o-q and now average 8.4%.