Perth CBD Office Figures Q2 2025

Key Points: 

• 2Q25 enquiry volumes of c.73,000 sqm recorded, below the c.90,000 sqm recorded during the same quarter last year. The number of enquiries stood at 106 compared with 123 in 2Q24.
• Gross new leasing volumes during 2Q25 was largely inline with 2Q24 with c.15,000 sqm recorded across 13 transactions (new deals ≥ 500 sqm).
• Prime CBD net face rents increased to $721/sqm (+4.2% y-o-y) and prime incentives have remained steady averaging 47%.
• Net absorption of -4,599 sqm recorded during 1H25, bringing the rolling 12-month net absorption to 20,587 sqm, which is largely in line with the 20-year annual average of c.20,000 sqm.
• Supply of Nine The Esplanade and its backfill space led to the total vacancy rate increasing to 17.0% from 15.1% at 2H24. Prime vacancy stands at 15.3% and secondary vacancy stands at 20.2%.
• The sale of 23 Barrack Street for $5 million was the only transaction recorded (sales ≥ $5 million), however, close to $530 million of CBD office stock was actively marketed during 1H25.
• Prime grade midpoint yields increased by 6 bps q-o-q to an average of 7.4% while secondary grade midpoint yields remained stable q-o-q averaging 8.4%.