New 10 year tenant at Perth’s Council House

By WA Commercial Office Leasing

Council House will have a new tenant after level 3 was leased to McWilliam Davis Lawyers.

Ray White Commercial WA director of commercial services Luke Pavlos brokered the deal, with the 753 sqm floor leased for 10 years at a rate of $375/sqm per annum. Mr Pavlos identified and secured the tenant within a week of being appointed as the exclusive leasing agent.

Council House was originally designed by architects Howlett & Bailey and was completed in 1963. The 13-storey building is mostly occupied by Perth City Council, but levels 3 and 4 had been operated as serviced offices, with 22 single offices on level 3.

Mr Pavlos said Council House was one of the most iconic buildings in Perth CBD.

“It’s uniquely positioned, surrounded by picturesque gardens, views of the Swan River and just a stone’s throw from the evolving Elizabeth Quay and the law court precinct,” he said.

“The building, while originally completed in 1963, has experienced various refurbishments and is due for further works to be undertaken, including a new end-of-trip facility and building services upgrades to improve WELL Standards.”

Mr Pavlos said the building location, existing fit out and landlords’ commitment to further enhance the assets were key drivers for the tenant’s long term commitment.

“The floor was heavily partitioned and, while modern office requirements would warrant for much of the fit out to be removed, the cost to build the equivalent in today’s market is very expensive,” he said.

“So for a legal firm who preferred a higher ratio of partition offices, this was a strong selling point.”

Lord Mayor Basil Zempilas said the City of Perth was preparing to roll out the welcome mat for their new neighbours at Council House.

“We’re looking forward to not only sharing our office space but also our famous view,” Mr Zempilas said.

“We overlook one of the most liveable cities in the world, with our iconic building offering sweeping views of the Derbarl Yerrigan (Swan River) on one side, to some of the city’s oldest and grandest buildings on the other, including our very own Town Hall.

“In joining us at Council House, the new tenancy is also further proof that the best place for business is right here in the heart of the city.”

Mr Pavlos said the Perth office market had experienced a sustained run of positive net absorption, driven by the strength of Western Australia’s economy, fuelled by the resources sector and strong commodity prices.

“Our net absorption for the last six-month period was 23,950sqm, which is well above our historical levels,” he said.

“Take up continues to be influenced by the flight to quality as tenants seek premises that offer staff high quality accommodation, services and amenity to retain and attract staff to the workplace.

“Those building owners who have proactively invested in their assets with upgrades to lobby upgrades, end-of-trip, building services and speculative fit outs have been most successful in what is a very competitive leasing market.

“Market enquiry is back to pre-covid levels and our office occupancy is the highest in the nation, due to the strong economy, the relative ease for commuters to get to the CBD and the City of Perth’s initiatives to attract the workers back.

“Overall vacancy for the Perth CBD was up 0.05 per cent and is likely to increase off the back of tenants migrating to EQ1, however, the migration is from existing Premium and A- grade stock which will continue to attract strong market demand.”

Luke Pavlos
Director Commercial Services
0408 823 823

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