Education sector driving interest in Perth office space
The sale of an entire floor of a Perth office block in a prime location has given some hope to an otherwise subdued commercial property market in the city.
After 12 months on the market, level four of 12 St Georges Terrace has been purchased by a leading Australian health education provider, Health Careers International (HCI), a specialist education provider to the health industry. The sale has triggered a spike in interest in Perth commercial property from the education sector, agents say.
The whole floor comprises 1082 square metres, made up of 12 strata-titled units, allowing the new purchaser flexibility to sell or lease in smaller configurations if required.
It is one of two floors offered for sale in the 12-level building, originally built in the early 1970s. Level 10, spanning 1072 square metres plus exclusive-use areas, is still on the market at $5.5 million.
HCI, which commenced operations in 2007, provides vocational and post-graduate education, training and professional development programs from campuses in Melbourne, Sydney and Perth.
While the purchase price has not been revealed, it is understood to be below the listed price of $4.8 million.
The sale of the property has been a catalyst for a spike in interest for Perth offices from eastern states buyers. Altegra Property Group director of Sales and leasing Adam Smith, who negotiated the sale with HCI, said high vacancy rates in Perth combined with low interest rates had helped drive recent inquiry from the east.
Interest from the education and training sector had been particularly strong, Mr Smith said.
“Even in the last month, there’s been a definite increase in activity across the board,” he said. “Education is an expanding business, with talk of student accommodation in the city and the potential for universities in the city.
“Since this sale I’ve had interest from five other training providers for the other floor (of 12 St Georges Terrace), including three from the eastern states.”
Mr Smith said while commercial vacancy rates were high in Perth, there were limited opportunities to purchase whole city floors.
Perth’s St Georges Terrace is seen as the city’s blue-chip commercial address, with the strip to the west of Barrack Street the most sought after. While 12 St Georges Terrace is to the east of Barrack Street, it has a unique location facing the Perth Concert Hall and sprawling gardens of Government House.
The location gives the building impressive sweeping views of the Swan River and Narrows Bridge. Its tenants include the prestigious WA Club on the top floor.
