Sales sealed as Perth commercial property defies pandemic

The sale  of the Leederville office building was a vote of confidence in the Perth market.
The sale of the Leederville office building was a vote of confidence in the Perth market.

Perth’s commercial property market is bouncing back from the coronavirus pandemic, with buyers vying for assets across the city.

A recent series of sales and listings has local agents convinced that Perth has seen the worst of the downturn and confidence is returning.

JLL has closed two major commercial deals since April and put a third property on the market, with agents saying there is no shortage of buyers.

In April, a two-level boutique office building, in the heart of the Leederville’s tightly-held commercial and entertainment precinct, was sold off despite initial fears the pandemic would derail the sale.

It was the first time in 22 years the 388sqm building at 642 Newcastle St was on the market.

There was a flurry of interest from investors and a contract was signed two weeks after the property was listed, despite the sale being in the middle of lockdown.

The property at Bibra Lake recently sold.

Meanwhile, a large workshop land holding at 41 Miguel Rd in Bibra Lake was bought by an owner occupier.

The unique property featured 1186sqm of office and workshop space on a significant 10,800sqm landholding.

The deal included a 10-tonne gantry crane in-situ.

JLL’s Jeremy Parasiliti says the sale is evidence of confidence in the Perth market.

“The ‘pause button’ effect that was clearly evident throughout the early stages of the COVID-19 pandemic has lifted, and we are encouraged by the depth of the buyer pool for this particular asset,” he says.

“We are working closely with a number qualified under bidders looking for similar opportunities in Perth’s southern corridor.”

1 Howard St in Perth is now on the market.

With the market defying the downturn another noteworthy property has been listed with the anticipation of strong interest from potential buyers.

The A-grade office building on offer is at 1 Howard St is in the heart of the Perth CBD.

It is  modern 1,941sqm, 5-level office building with basement car parking.

JLL’s John Williams says the property offers a “relatively low entry point for investment in a freehold CBD asset, with no compromise on quality, functionality or location.”

“This self-contained building is exceptionally designed with functional 420sqm floor plates, high levels of natural light from 3 window frontages, raised access flooring and five levels served by two passenger lifts.

“The building has limited short to medium term capital expenditure requirements, given the works that have recently been completed.

“These include refurbished end of trip facilities and toilets on all office floors, replacement of lift motors and major air-conditioning plant replacement” Williams says.

Expressions of interest closes August 27.