Brookfield Property Partners’ confirmation Westpac will make Brookfield Place tower 2 its new Perth home has generated a snippet of feel-good news in an otherwise downtrodden CBD market.
BPP today said it had struck a 10-year deal for Westpac to occupy 6300sqm over levels two, three and four, and hang its shingle alongside Deloittes’.
Westpac’s move, tipped in WestBusiness in August and confirmed in December, was formalised only recently.
BPP also confirmed it had signed up Gilbert + Tobin for 1400sqm on level 16 for 12 years and international law firm Holman Fenwick Willan for 1200sqm on the floor below for 10 years.
Another pending deal for 1000sqm would take occupancy in the premium tower from 63 per cent at the end of 2015 to 94 per cent 15 months later, BPP head of asset management Australia Danny Poljak said.
Property Council WA figures indicate CBD office vacancy rates of 22.5 per cent with Y Research numbers at 25 per cent-plus.
“It has been a positive reinforcement of the demand for premium space in a challenging leasing environment and it is an encouraging sign for the Perth CBD office market,” Mr Poljak said.
He said the Brookfield precinct retail offering, food and beverage, outlook, child care centre, gym, art and cultural events and proximity to train and bus stations meant there had been “competitive tension” between aspiring tenants.
In one example, Telstra has settled for a sublease on some of BHP Billiton’s space in Brookfield Place tower one.
“I think it’s the quality of the Brookfield Place precinct,” Mr Poljak said.
Westpac, Gilbert + Tobin and Holman Fenwick Willan are fitting out their selected spaces. Their leases, negotiated by CBRE, start before the end of the year.
Brookfield Place tower two, a 16-level office tower with 34,000sqm of net lettable area, opened in November 2015 with foundation tenants Deloitte, Wesfarmers and Corrs Chambers Westgarth.
There is 2025sqm remaining over three tenancies, 525sqm on level 11, and 850sqm on level 15 and 650sqm on level 16.