Commercial property prices rise as WA market tightens
The pressing need for office space in Perth and surrounding areas could mean that commercial ...
The pressing need for office space in Perth and surrounding areas could mean that commercial property prices and rental rates grow in 2012, according to an industry expert.
Speaking to the West Australian on December 28, the Property Council of Australia's Western Australia executive director Joe Lenzo said that competition between renters looked set to increase in the New Year.
Lenzo asserted: "We have vacancy rates getting down to zero in A-grade and prime buildings and that's really not going to change, so we are going to have a year of virtually no space in the CBD and a lot of pressure on rents to get even higher."
The unprecedented growth stems directly from the increase in resource development projects currently being established in the region - with larger businesses seeking much-needed space for their corporate operations.
With the activities of larger companies bringing in extra personnel, there has been an increase in interest from professional service providers drawn to the expanding needs of the local population.
Subsequently there has been an explosion of additional businesses either seeking to enter into the Perth market or expand their current offerings.
Lenzo said that some of this increase in demand can be met by recent commercial property developments in the area, but cautioned that "the problem is the infrastructure hasn't caught up".