New Palace Tower Leasing Campaign Creates Rare Opportunity as Perth CBD Vacancy Tightens

On the heels of Perth’s most successfuloffice leasing campaign, Realside and Lendlease Investment Management arepreparing to offer 4,300sqm of premium office space in Palace Tower at 108 StGeorges Terrace.

Featuring high quality existing fitouts,contiguous floorplates and outstanding Swan River views, the space presents arare opportunity for occupiers at a time when Perth's office market isexperiencing tightening supply and strong tenant demand.

The newly available space spans Levels 33 to37 in Palace Tower, a building acquired by Realside and Lendlease in late 2022for $340 million.

Following a repositioning and leasingcampaign 23 leases totalling more than 10,500sqm have been transacted.Occupiers include KordaMentha, Gadens, K&L Gates, Bentley Systems, Unicorn,Xodus, SQM, Aurizon, CorePlan and Commonwealth Government.

“No other building in the Perth CBD has had thisvolume of leasing transactions over the same period,” noted CBRE’s JamesPhelan, who is marketing the newly available floors.

“The range of tenants highlights broadconfidence in the asset across multiple sectors and we’re expecting similarlystrong interest in Levels 33-37 as demand for high quality office spacecontinues to strengthen across the Perth CBD.”

Extensive refurbishment works have been a keytenant drawcard, with the previous owner investing $110 million in the buildingahead of Realside and Lendlease undertaking upgrades to the lobby, conferencefacilities, end-of-trip facilities and wellness amenities.

Realside CEO Linda Rudd said the building'ssuccess demonstrated the strength of both the asset and the Perth market, withthe combined CBD Premium and A Grade vacancy rate having fallen below 10%according to CBRE data.

“Western Australia continues to lead thenation in economic and population growth, supported by a diverse resourcessector, significant infrastructure investment and robust labour marketconditions. Importantly, the state's growth story is broadening,” Ms Rudd said.

“While resources remain a cornerstone of theeconomy, emerging investment linked to AUKUS, defence capability, energytransition initiatives and Australia's critical minerals supply chain iscreating additional sources of long-term economic activity and employment.

“Western Australia is uniquely positioned tobenefit from this activity. Together, these factors are expected to supportongoing business investment and demand for commercial property.

“Our focus at Palace Tower has been oncreating a best-in-class workplace experience and the market response has beenextremely encouraging. The building is well positioned to benefit from thecontinued tightening of the Perth CBD office market, particularly at thepremium end.”

Charlotte Stratton, Head of Leasing &Asset Management, Workplace at Lendlease said the availability within PalaceTower came at an opportune time for occupiers.

“Palace Tower is a standout example of how high-qualitywell-located office assets are outperforming in a supply constrained market,” MsStratton said.

“The available floors benefit from existingfitouts, exceptional river views and a fully upgraded amenity offering, providinga workplace solution that would be extremely difficult to replicate elsewhere.”