High Vacancy Rate for Perth Industrial Leasing Market
The Perth industrial leasing market is going through a period of higher vacancy as business confidence and sentiment have dampened due to Western Australia’s perceived poorer economic position, says Ray White Commercial.
Vanessa Rader, Head of Research for Ray White Commercial, said Ray White Commercial Burswood had monitored a total of 724 leasing listings in the sub 1500 sqm range, representing a total of 402,161 sqm of vacant space across metropolitan Perth.”
“More than half of these listings are located in the north, while the east represents 33.4 per cent and the south 15.5 per cent,” she said in the Between the Lines, Perth Industrial Leasing Market (sub 1500 sqm) report.
Vanessa Rader said suburbs which suffer from the greatest volume of stock include the northern suburbs of Wangara, Malaga and Osborne Park.
“These three suburbs account for 65.8 per cent of the total vacancy in the north – or 135,263 sqm of stock,” she said.
Ray White Commercial Burswood Managing Director Russ Parham said with the current high availability of stock there has been some compression in average face rents across the metropolitan area.
“Competition in the market has also raised the issue of incentives which have not been prevalent in this sector for some years,” he said.
“Currently rent free periods of up to three months on a 3-5 year lease and other incentives, depending upon the property location and presentation, have also been offered to prospective tenants.”