A fully leased strata-titled office in the heart of the Perth’s CBD has sold for $2.9 million in a rare deal highlighting investor demand for secure, income-producing assets.
The 554sqm space at Level 9/160 St Georges Terrace – located directly adjacent to Central Park Tower in Perth’s core CBD – is leased to Rider Levett Bucknall, a globally recognised quantity surveying and construction consultancy firm.
It was sold with a new five-year lease with options in place until 2032 and brand-new fitout, providing the purchaser with long-term stability.
A private investor purchased the property in a deal negotiated by Knight Frank’s Zach Schreier and Cory Dell’Olio.
According to the agents, strata offices of this scale and quality are rare in the current market, especially those sold on a yield basis, making the deal a strong indicator of investor expectations.
Mr Schreier said: “Fully leased strata offices sold purely on yield are uncommon in the current Perth CBD market, which is typically driven by strong owner-occupier demand.
“This deal reflects the returns private investors are targeting and provides a clear benchmark for where income-producing strata assets are being priced today.”
Mr Dell’Olio said the combination of a strong tenant covenant and prime location underpinned the result.
“The property is situated in one of Perth’s most prestigious business addresses, directly next to Central Park and surrounded by major corporate occupiers,” he said.
“Coupled with a brand-new fitout, the asset offered an appealing investment with strong leasing fundamentals that resonated with buyers. These attributes are also expected to underpin long-term capital growth.”
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