Commercial Real Estate in Perth is a Tenant's Market
If you’ve been reading up on commercial real estate in Perth over the last couple of months, you may be feeling concerned. The AFR’s recent article reported that the office vacancy rate is currently around 16% and could rise to 20% by the end of the year. Those figures aren’t pretty.
It’s believed the rising vacancy rate is associated with the shift away from the previously dominant mining sector. The Australian economy is moving on and starting to focus on non-mining industries, resulting in cities such as Melbourne and Sydney experiencing a boom in demand for office rental by service industries.
However the rise in office vacancy rates in the Perth commercial real estate market means that tenants are poised to take advantage.
With an excess of commercial real estate on offer in Perth, tenants are taking the opportunity to negotiate lease arrangements which provide excellent value for money, some of which may include lease incentives.
What does this mean if I am looking for commercial real estate in Perth?
This is an excellent opportunity for you to make the move into Perth’s CBD if you were previously priced out. Current conditions are favourable to secure a lease arrangement which will provide good value for money.
What does this mean if I own commercial real estate in Perth?
Lower rental incomes and higher vacancy rates are becoming more common in the Perth commercial real estate market. This requires you to have some flexibility when it comes to negotiating lease arrangements and a willingness to consider the inclusion of tenant incentives such as refurbishments.
Looking to secure a commercial property in Perth? Browse our portfolio of commercial real estate for lease in Perth.
Do you own commercial real estate in Perth? Speak to one of MMJ Real Estate’s commercial property experts to find out how we can help you secure tenancy for your property.