Perth CBD Office Market Q3 2023

October 12, 2023 6 Minute Read

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Key Points:


  • WA’s economic outlook remains positive, but is forecast to slow due to a combination of slowing export growth and the consumption headwinds due to higher interest rates
  • Strong leasing activity recorded in Q3 2023 with c.55,000 sqm of new leasing volumes (transactions ≥ 500 sqm), up 127% y-o-y.
  • CBRE’s Q3 2023 leasing enquiry volumes in the CBD was flat y-o-y, totalling c.67,000 sqm.
  • Prime net face rents increased to $677/sqm (+2.5% q-o-q and +6.0% y-o-y). Secondary net face rents saw a slight increase to $460/sqm (+0.9% q-o-q and +3.3% y-o-y) in Q3 2023.
  • Westralia Square 2 (~9,500 sqm) was completed in the period, with Capital Square Tower 3 (~13,700 sqm) scheduled to complete in 4Q23 . A further c. 24,000 sqm of space is scheduled to become available in 2024 as refurbishments at QV1 and 186 St Georges are completed.
  • Q3 2023 saw one office transaction in the Perth CBD, with 503 Murray Street sold for $33.5 million.
  • Prime midpoint yields increased 21 bps q-o-q to an average of 7.18%, with secondary midpoint yields increasing 12bps q-o-q to an average of 8.00%.