Why the vacancy rate has plummeted at the Exchange Tower in Perth
A succession of blue-chip tenants at the premium-grade Exchange Tower in St Georges Terrace has resulted in a total vacancy of just 12 per cent across the 40-storey building.
Knight Frank senior director and head of office leasing WA Ian Edwards said just one floor remained for lease, which was currently under offer, in addition to a handful of smaller areas up for lease.
“We’ve gone from a 43 per cent (vacancy) to 12 over the course of about two years,” he said.
The rapid leasing program, where virtually every other lease in the building had been renewed, was due to several factors, including relationships with tenants, the building’s location and the tower’s calibre, he said.
“We pride ourselves in relationship building so tenants in the building are made to feel very welcome,” he said.
“The building is well located … It is in between the legal precinct, and tenants – stockbrokers, banks plus legal tenants – find the building very good. We also have some of the major resource houses in the building, like Mitsubishi. So the tenant list tends to be very blue-chip.”
Located just off St Georges Terrace in the heart of Perth, Exchange Tower is closely situated to Elizabeth Quay and the city’s major shopping malls.
It is jointly owned by WA-based property investor Primewest and AMP Capital.
AMP Capital office and industrial managing director Luke Briscoe said Exchange Tower was an enduring stand-out in a constantly evolving market.
“To help differentiate the building and ourselves as real estate partners, we have implemented key customer initiatives to genuinely help our customers connect,” he said.
“These initiatives include introducing the ground-floor concierge team to complement the newly refurbished lobby; a digital art installation showcasing some of the West’s best landmarks and locations; and a larger ground floor cafe, equipped with both open and more private seating to foster a greater sense of community, communication and collaboration within the building.”
An $8 million lift upgrade, which will result in a complete cosmetic and mechanical upgrade to all the building’s 15 lifts, as well as a $3 million capital upgrade of the forecourt, are among the recent capital works announced to “future proof” the building.
During the past 12 months, accounting firm RSM has leased three floors, while ministerial and parliamentary services, Far East Consortium, SMBC and Kansai have leased part-floors.
Morgan Stanley, Bain and Quayside are among companies to renew leases.
