The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
OfficeStaff WriterWed 24 Jun 15

Perth Office Rents Plunge From Most Expensive To Cheapest

TUD+ MEMBER CONTENT
1
SHARE
print
Print

Average prime net effective rents in the Perth CBD will be amongst the lowest of all the major CBD office markets in Australia by 2018.

This dramatic change in fortunes emerges from BIS Shrapnel's latest research. Over the next three years, the company forecasts a slump in Perth's net effective rents of 40%, down to an average of $236 per square metre - well below levels forecast for Sydney, Melbourne and Brisbane and just below Adelaide and Canberra.

The rapid deterioration in Perth office rents is directly influenced by the market vacancy rate, which is expected to rise from around 18% now to 24% by June 2018. The forecast blow-out in the vacancy rate stems from supply outpacing demand.

Over the next 12 months, around 120,000 square metres of office space is due for completion in the Perth CBD, with a further 75,000 square metres due over the two years to June 2018. Although about 65% of this space is committed, BIS Shrapnel fears the market will have trouble absorbing the uncommitted space and backfill space created as tenants relocate.

BIS Shrapnel expects only modest net absorption of office space in the CBD between now and 2018, held back by weak employment growth. The problem for the Perth office market is that the downturn in resources investment has further to run, reaching a forecast trough in 2018.

Already, rising vacancies have caused prime average net stated rents to fall by 13% since the peak in 2012. However, effective rents have fallen much further - by 47% to June 2015, in the process shifting the mantle of the most expensive of Australia's major CBD office markets from Perth to Sydney.

OfficeAustraliaPerthFinanceSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
6 Min
View All >
770-772 George Street proposed 13-storey mixed-use development by Dickson Rothschild
Hotel

Adaptive Reuse Hotel Plans for Century-Old George Street Site

Leon Della Bosca
Sponsored

How Feature Trees Elevate Property Value and Urban Beauty

Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
Details of the case involving a Woolloongabba site resumed by the authority and acquired by the developer have now emerg…
LATEST
770-772 George Street proposed 13-storey mixed-use development by Dickson Rothschild
Hotel

Adaptive Reuse Hotel Plans for Century-Old George Street Site

Leon Della Bosca
2 Min
Development

How Feature Trees Elevate Property Value and Urban Beauty

2 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The rezoned Westmead South Precinct will lie south of the metro station.
Placemaking

State Fast-Tracks Rezonings to Open Way for 11,000 Homes

Patrick Lau
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/perth-office-rents-plunge-expensive-cheapest