Perth tenants lift occupancy in Brookfield Place Tower 2 to 91pc
Brookfield Property Partners has leased nearly 9000 square metres of its premium Brookfield Place Tower 2 in central Perth, bringing the occupancy to 91 per cent.
Westpac has taken 6300 square metres on levels two, three and four for a 10-year term, local law firm Gilbert + Tobin has committed to as much as 1400 square metres of level 16 for a 12-year term and London-based law firm Holman Fenwick Willan will occupy 1200 square metres on level 15 for a 10-year term.
The new leases, all due to commence by the end of this calendar year, are a good sign for an office market that hit a record 22.5 per cent vacancy rate in the six months to January.
Analysts say the worst has passed for the market and, with a decade of new supply of office accommodation ending, a market battered by the end of the resources investment boom is expected to stabilise.
Vacancy rates in Perth’s premium office space market had already improved to 16 per cent, down from 16.7 per cent, the Property Council of Australia’s Office Market Report last month showed.
Brookfield, which officially opened the 16-level Tower 2 in November 2015, welcomed the new leases, which add to existing tenancies by Deloitte, Wesfarmers and Corrs Chambers Westgarth.
“It has been a positive reinforcement of the demand for premium space in a challenging leasing environment and it is an encouraging sign for the Perth CBD office market,” said Danny Poljak, Brookfield Property Partners’ head of asset management.
Tower 2 has a total 34,000 square metres in net lettable area. A further 1000 square metres is also currently under offer and once executed that will further boost occupancy to 94 per cent, the company said.
The building is the second in the Brookfield Place precinct, after the 45-storey Tower 1, which has 75,000 square metres and is anchored by BHP Billiton, opened in September 2012.
