Norwest Market Review
09 November 2015 | 2 min read
Norwest Commercial regularly conducts market reviews to get a better insight into how the office market has performed and how it might perform in the future. Total vacancy for office space in Norwest Business Park has reduced to 5.83%. This can be separated into larger “lease only” and smaller strata office space. The larger lease only space totals 3.68%. The smaller strata office space accounts for 2.14%.
Despite modest rental demand, tight supply is affecting rental pricing with good growth in rents and lowering of incentives for smaller properties as the strong demand to purchase depletes available stock.
There is a growing proportion of unsatisfied tenants and purchasers who are not able to find a suitable property.
Sale prices have jumped considerably owing to the lack of supply. Some recent strata office deals.
3.15 Atlas 66m2 $6,060/m2
1.08 Versatile 97m2 $5,103/m2
A3.04 Sky City 76m2 $4,605/m2
NEW MARKET PRICING
Traditionally the market is used to Private Treaty sales and this can put a cap on the sale price that is achieved. It probably isn’t the best method of sale in a changing marketplace. We have seen multiple cases of purchasers “gazumping” each other and paying prices in excess of the asking price.
Norwest Commercial conducted an auction at the beginning of November for 1.08 Alpha which is a 106m2 office. The results were impressive, achieving a sale price of $610,000.