Ray White Head of Research Vanessa Rader said despite the doom and gloom of the broader state economy, the positive take-up of space recorded in the Perth CBD market over the past two and a half years had been the shining light.
“While absorption has been at a limited rate, it’s aided in the continued downward trajectory in vacancy, however it’s been heavily reliant on the movement of tenancies from outside the CBD to the CBD rather than real, organic growth in space needs,” Ms Rader said.
Mr Norman said the West Perth office market had seen a tough five years.
“Tenancy leakages to the Perth CBD has added to the overall poor performance of the West Perth market that’s seen vacancies fluctuate rapidly,” he said.
“After what appeared to be an improvement in take-up last period, the double whammy of supply re-entry and tenant losses has resulted in a sizeable increase in vacancy.
“That being said, there are some tenants that will always choose West Perth over the CBD and they’re the heartbeat of that region.