This article is from the Australian Property Journal archive
AN office building in the core of Perth’s business district with both holding income and repositioning potential is expected to sell in the mid $20 millions range.
The six-storey building at 10 William Street has 4,248 sqm of net lettable area and sits on a 1,560 sqm site near the Elizabeth Quay precinct, with secure open parking at the rear for up to 30 cars.
Some 24% of the building is currently vacant and there is potential for up to 74% vacancy by the end of this year, giving the opportunity for an incoming owner to embark on a refurbishment and leasing campaign or owner occupation. The majority of the building has a 9B classroom certification, allowing education-based buyers to occupy or lease the property.
The property is currently bringing net annual rent of $1,356,524, with an estimated fully leased net income of $2,042,164 per year.
The building has been well maintained and has recently undergone significant base building upgrades to the amount of $2.5 million.
10 William Street is being taken to the market via an expressions of interest campaign run by Tony Delich and Zach Schreier of Knight Frank on behalf of three private overseas vendors.
Delich said the property provided a compelling offering primarily due to the advantageous building location and exceptional value-add potential within the Perth CBD.
“With a large land holding of 1,560 sqm and its current underutilisation, there is significant future development potential being one of the last large development sites in the core of the Perth CBD.”
“It currently offers buyers a good balance between holding income and repositioning potential.”
The Perth CBD was the most resilient office market over the 2023 financial year, according to JLL, with its 66,600 sqm of net absorption higher than the 20-year average. Its vacancy rate tightened to 18.5%, with a wide vacancy spread between prime (15.6%) and secondary (23.2%) grade assets.
The 10 William Street campaign closes Wednesday, 30th August.
