Commercial real estate boom continues in Perth
A recent survey by a prominent industry leader has highlighted the growth potential of Western Australia's capital city - with the state displaying some of the best result s in the country.
According to The Property Council of Australia, the region's resource boom has contributed to the massive expansion experienced by Perth's non-residential sectors.
Director Joe Lenzo said that the city was experiencing some of the tightest office rental markets in the nation, with rising rates and a limited number of vacancies.
"Property investors and developers in WA were mostly confident about prospects for the non-residential sector, including the commercial office and retirement living sectors," asserted Lenzo.
"This reflects the rapid expansion of the Western Australian economy that is now underway. The resource and infrastructure boom will underpin rapid growth in Western Australian economic activity for several years, with the boom in investment not expected to peak until at least 2014."
The prevailing market conditions in and around Perth mean that - for investors - the opportunity exists to generate a substantial return on investment over a relatively short time-frame.
However, the pressures felt by smaller firms currently involved in renting office space in the now-lucrative sector may mean they start to consider relocating to less expensive premises.