Lease Equity Office Leasing Recap | 2018
Lease Equity is pleased to announce that the 2018 Office Leasing has been the best market since 2012.
Key attributes to this include:
- Rise in activity within the Resources Sector based on major project announcements including expansion and new development
- Increased level of demand from Government and Resource sectors triggering a significant decline in Prime and A grade stock
- Limited number of contiguous floor plates in particular premium grade space
- 240 St Georges Terrace now close to 100% leased
- Kings Square 1 approximately 80% leased
Where are we at:
Preliminary vacancy rates for 1 January 2019 are estimated at approximately 19% for the CBD (down from 19.4% as at 1 July 2018. West Perth is estimated at 15% (down from 15.8% as at 1 July 2018).
Whilst the adjustment in vacancy may seem modest, the last quarter of 2018 has been an extremely busy period with many major deals due to fall into to the first and second quarters of 2019.
What is ahead:
2019 will see reductions in incentive levels for Prime and A grade stock and potentially even modest face rent raises
The tightening of vacancy in the Prime and A grade stock together with limited number of contiguous full floor options will also lead to increased activity in for new development pre-commitments for tenants seeking consolidation options in 2022/23.
Lease Equity Office Leasing would like to wish all our clients a very Merry Christmas, safe a prosperous New Year.