Lavan Secures Quayside Floors as WA Office ‘Drought’ Looms

Perth law firm Lavan has secured two floors in the new Nine The Esplanade offices at Elizabeth Quay, just ahead of a forecast CBD office drought. 

Lavan has committed to a 10-year lease for 3738sq m across levels 5 and 6 of the building, which is now 92 per cent leased.

The law firm will join high-profile tenants EY, whose logo adorns the top of the building, Multiplex, INPEX and Fremantle-founded boutique brewer Little Creatures that has now opened a venue downstairs.

Lavan managing partner Dean Healy said all of the firm’s staff would move from their current offices at 1 William Street.

The 19-level Nine The Esplanade, jointly owned by Brookfield Properties and Cbus Property, has large floorplates of 1870sq m, floor-to-ceiling glass, co-working and conference spaces, end-of-trip facilities and undercover parking.

Cbus Property’s chief executive Adrian Pozzo said the building would help activate Elizabeth Quay, which has emerged in the past decade in the Perth CBD on the northern bank of the Swan River.

The Urban Developer understands Lavan will not move into its new digs until 2027 and that the landmark ‘Lavan’ signs atop 1 William Street visible from the southern riverbank will not be coming across to Nine The Esplanade. 

The move will come in the nick of time for Lavan it seems—Knight Frank last week forecast a “drought” of office space for the Perth CBD.

Knight Frank senior economist Alistair Read said there was no office supply under construction due to a sharp rise in economic rents—the level of rent at which construction of a new project becomes feasible—in Perth since 2021.

▲ Lavan’s lawyers will have a Little Creatures pub downstairs for Friday afternoon catchups by the northern bank of the Swan River at Elizabeth Quay.

“Economic rents have surged due to a significant rise in construction costs, interest rates and incentives, as well as a softening in yields and the resulting fall in asset valuations,” Read said.

“As a result, the pipeline for new office supply in the CBD has diminished substantially, which will lead to a drought in new office supply over the coming years.

“While other cities around Australia will also face a lack of supply for premium CBD office stock, Perth stands out as a city with a particularly scarce supply pipeline.”

Read said premium office market rents in the Perth CBD would likely rise as supply tightened, with net effective rents to grow at an average of 9.1 per cent a year from the fourth quarter of 2025 to the fourth quarter of 2030, well above the 10-year average to the last quarter of 2025 of 1.9 per cent a year.

“Development is forecast to be once again viable around 2030, which means there may not be any new premium developments completed until 2033,” he said.

Natasha Mohiuddin of Cygnet West, which provided tenant representation services for Lavan, said many businesses were moving to open-plan layouts but the legal firm wanted to maintain more private office spaces.

“Securing such a significant requirement in a tight market is an outstanding result,” she said.