Description

On the road to recovery?

After 18 months of recording negative net absorption, Perth’s suburban markets recorded positive demand over the past 8 months despite a majority of the 49 suburban office markets covered recording lower demand – including major markets Northbridge, Subiaco and Herdsman. Positive demand was driven by non-core markets such as Mirrabooka and Myaree as well as the expansion of local tenants such as the State Government, Summit Homes, RAAFA, Mineral Resources, Access Housing and Silverchain.

The key question remains: have suburban office markets passed the bottom of the market? Are they on the road to recovery due to State Government decentralisation, improved economic diversity and retention of major suburban occupiers, or is worse still to come due to over 10,000 sq m of speculative development forecast to be completed in the next 6 months, the potential for further relocations to the CBD and uncertain short term economic conditions?

Find out in the latest WA Suburban Office Report by independent West Australian commercial property information and research firm, Y Research.

The August, 2018, edition of the West Australian Suburban Office Report:

• Outlines the key drivers of renewed positive demand in suburban office markets, despite a majority of suburban office markets recording negative net absorption;
• Outlines how building characteristics such as quality, age, size and location impact its performance;
• Demonstrates how the flight to quality and competition for tenants are impacting market rents and leasing incentives; and
• Details the strong supply completions forecast for 2018 and how the future supply pipeline for office development across suburban office markets is being shaped by State Government decentralisation and mixed use development.

Background on Y Research West Australian Suburban Office Report

Y Research’s West Australian Suburban Office Report is the most comprehensive source for information on Perth’s suburban office markets. The August 2018 West Australian Suburban Office Report now covers just under 2,000 buildings containing over 1.75 million square metres of stock across 49 metropolitan Perth suburbs. The Report provides essential information on market vacancies, net absorption and net supply additions at a suburb, region and whole market level.

Now in its 13th edition the Report builds on data from early 2012.

The Report provides results at a market, region and suburb level.

Analysis covers total stock and vacancy, market rents, recent supply additions and net absorption for each suburb and region. Details of developments under construction, and approved, are covered for each suburb.

Click here to access the order form for the August 2018 WA Suburban Office Report.