New Palace Tower Leasing Campaign Creates Rare Opportunity as Perth CBD Vacancy Tightens

On the heels of Perth’s most successful office leasing campaign, Realside and Lendlease Investment Management are preparing to offer 4,300sqm of premium office space in Palace Tower at 108 St Georges Terrace.

Featuring high quality existing fitouts, contiguous floorplates and outstanding Swan River views, the space presents a rare opportunity for occupiers at a time when Perth's office market is experiencing tightening supply and strong tenant demand.

The newly available space spans Levels 33 to 37 in Palace Tower, a building acquired by Realside and Lendlease in late 2022 for $340 million.

Following a repositioning and leasing campaign 23 leases totalling more than 10,500sqm have been transacted. Occupiers include KordaMentha, Gadens, K&L Gates, Bentley Systems, Unicorn, Xodus, SQM, CorePlan and the Commonwealth Government.

“No other building in the Perth CBD has had this volume of leasing transactions over the same period,” noted CBRE’s James Phelan, who is marketing the newly available floors.

“The range of tenants highlights broad confidence in the asset across multiple sectors and we’re expecting similarly strong interest in Levels 33-37 as demand for high quality office space continues to strengthen across the Perth CBD.”

Extensive refurbishment works have been a key tenant drawcard, with the previous owner investing $110 million in the building ahead of Realside and Lendlease undertaking upgrades to the lobby, conference facilities, end-of-trip facilities and wellness amenities.

Realside CEO Linda Rudd said the building's success demonstrated the strength of both the asset and the Perth market, with the combined CBD Premium and A Grade vacancy rate having fallen below 10% according to CBRE data.

“Western Australia continues to lead the nation in economic and population growth, supported by a diverse resources sector, significant infrastructure investment and robust labour market conditions. Importantly, the state's growth story is broadening,” Ms Rudd said.

“While resources remain a cornerstone of the economy, emerging investment linked to AUKUS, defence capability, energy transition initiatives and Australia's critical minerals supply chain is creating additional sources of long-term economic activity and employment. 

“Western Australia is uniquely positioned to benefit from this activity. Together, these factors are expected to support ongoing business investment and demand for commercial property. 
 
“Our focus at Palace Tower has been on creating a best-in-class workplace experience and the market response has been extremely encouraging. The building is well positioned to benefit from the continued tightening of the Perth CBD office market, particularly at the premium end.”

Charlotte Stratton, Head of Leasing & Asset Management, Workplace at Lendlease said the availability within Palace Tower came at an opportune time for occupiers.

“Palace Tower is a standout example of how high-quality well-located office assets are outperforming in a supply constrained market,” Ms Stratton said.

“The available floors benefit from existing fitouts, exceptional river views and a fully upgraded amenity offering, providing a workplace solution that would be extremely difficult to replicate elsewhere.”