Perth CBD Office Snapshot February 2021
While the WA economy is performing well compared with many other states and territories, and COVID-19 has caused less disruption to the state than in many parts of Australia, the Perth CBD office market has, nevertheless, responded negatively to national and global events.
In 2018 and 2019 there were signs that the Perth CBD office market was recovering after a downturn which had lasted for more than five years. In 2018 and 2019, vacancy rates had been declining, sub-lease space was at low levels, there was positive net absorption (demand), incentives were starting to decline, rents were starting to increase, and yields were firming. 2020 has seen a reversal to some of these trends. According to the Property Council of Australia’s February 2021 Office Market Report, the total vacancy rate increased during the year from 17.5% to 20.0%, sub-lease space increased from 6.6% of total vacancy to 7.6% and 12 month net absorption decreased from +48,945 square metres in December 2019 to -45,098 square metres in December 2020.
For more information on the Perth office market, read our full report, or contact our office to speak to Gavin Chapman