Rents for office space in the nation’s CBD’s have been rising, but the increases have been tempered by incentives, such as a free office fit-out to rent-free periods.
Rents for office space in the nation’s CBD’s have been rising, but the increases have been tempered by incentives, such as a free office fit-out to rent-free periods.
Companies trying to entice workers back to the city for longer periods of time with nicer work environments is boosting demand for high-quality office space.
The tower, briefly Perth’s tallest building, sits on a prime CBD corner site bought by AMP in 1910.
No one associated with the pending transaction was prepared to comment, but sources said the building – developed by AMP and opened in 1975 – will be sold on a passing yield of 6.5 per cent to 6.75 per cent.
It is thought that capital generated from the sale will be recycled into AMP’s Quay Quarter Tower development in Sydney and potentially used for investor payments.
The building has performed relatively well in the soft Perth CBD office market and is 93 per cent leased with a low weighted average lease expiry of 2.8 years.