Perth Landlords Reap the Rewards of Office Investments

In the highly competitive Perth CBD office leasing market, proactive landlords that are investing in the overall amenity of their buildings are being rewarded with major new tenant signings.

Savills has recently concluded a number of significant new full-floor and part-floor office leases in the Perth CBD on behalf of Investa Office Fund and Brookfield at two of the city’s landmark office towers.

Graham Postma, Savills WA Managing Director, said the new lease deals are the result of strategic refurbishments to ensure continued relevance to tenants in the competitive Perth market.

“Landlords that are spending money on their buildings are winning tenants,” he said. “Everyone is competitive on financial terms, so what is making a difference is the level of building services and amenity being provided.”

Investa Office Fund’s refurbishment of 66 St Georges Terrace has included new end-of-trip facilities, on-floor upgrades including wet areas, new ceilings, lighting and most recently the completion of major lift upgrade and lobby refurbishment.

As a result of these works, Mr Postma said 66 St Georges Terrace has enjoyed strong leasing enquiry with Savills securing two lease commitments, from SOS International to a part floor ‘spec fitout’ tenancy on Level 8 and the Returned Services League of Australia - WA Branch to a full floor on Level 3.

Likewise, Brookfield has all but completed a full refurbishment of 108 St Georges Terrace. This investment has been rewarded with regular leasing successes throughout the program including two whole floors in the Palace building to Woods Bagot in 2015. Most recently, Savills secured commitments from Mirvac to a full floor on Level 39 and WA Insolvency Services to a full floor on Level 49.

Mr Postma said the leasing successes of both 66 and 108 St Georges Terrace are a direct result of the investments in the buildings by Investa Office Fund and Brookfield respectively.

“It is the little extras that can make a big difference in the current market,” he said. “Tenants are focussed on things such as staff amenity, building services and whether the building, its lobby, and common areas are reflective of their brand and their clients.”

Learn more about Savills Office Leasing services.