Property update

PERTH’S metropolitan office market appears to have moved past peak vacancy, as the current supply wave comes to an end and demand from an increasingly diverse tenant base continues to grow.

According to Y Research, the current vacancy rate across metropolitan Perth office markets is 20.9%. Suburban A-grade buildings boast the lowest vacancy at 11.9%, while secondary grade buildings in the Perth CBD and West Perth recorded vacancy rates of up to 36.4%.

“The lack of new supply until 2021 in the suburbs, and 2023 in the CBD, will allow metropolitan Perth office markets time to consolidate and grow their existing tenants’ bases.”

The question that remains unanswered for 2019 is that aside from resources, which other sectors will underpin growth, and are the local economic conditions strong enough to facilitate the required growth of local companies.

Source: Australian Property Jounral  

At Lunch with Damian Stone

Over lunch Damian gave us a very informative insight into the Perth property market. Typically the Perth market is driven by the resources industry and a slow down in that sector has attributed to the office vacancy rate which currently is equivalent to having 21 office buildings each with 24 levels vacant.  As a consequence there has been the emergence of five new market drivers being; shared or co-working spaces, technology, education, medical and creative industries, which now represent 10% of the market up from 3%.

Another interesting fact was a 31% change in trading hours of retailers in the city.  The biggest change has been in opening hours with 90% of retailers reducing their opening hours equating to an overall reduction of 168 hours/day across the board compared to the same time last year.

You can find out more about Damian and his research at www.yresearch.com.au. If you would like to join us for lunch please contact Russell Lester at info@lestergroup.com.au .

• 11 tenants, 8.65% vacancy currently being actively marketed;
• 8 years average lease term (WALE);
• 2 year rent guarantee from vendor;
• 8.0% average annual cash return;
• 10 year investment term;
• A new Bunnings Warehouse is currently being developed across the road;
• This Invitation is to Sophisticated Investors & Professional Investors only;
• Lester Group will invest at least $1millon.

Please note the purchase and final projections are subject to due diligence.

Important Note: This is not an offer or invitation to invest. It is not intended to, nor does it contain any recommendation or opinion in relation to the issue of units in a property syndicate. Investors should read the Information Memorandum and obtain their own independent professional advice before making any financial decisions in relation to the issue of units in a property syndicate.