Over the last 2 years we have seen a drop in demand for office rental space across the metro area.
Now the property council is predicting things will continue to worsen this year and next. At July 2014 CBD office vacancies where just over 11%, in January 2015 it’s almost at 15%.
There is now chatter that it will continue to worsen, as it does developers will pull out of projects, even speculation that Collins Elizabeth Quay will start to have non owner occupants slow or halt projects, There is said to be approx 150,000 sqm of office space to be completed this year or to come into the market further weakening it. The mining sector has soften, their projects are being completed, or gearing down and no major new ones on the horizon, so what will fill all this available space.
Where is the demand coming from that our council is expecting to fill Fremantle projects that are still nothing more than a paper dream? Late last year they’re still pushing to lock in more mandatory office development with their CBD planning. Is this going to attract developers to Fremantle?
We still have the stalled Kings Sq project, the city waiting for a white knight, his name Sir, Collin and wait they will for their Templar. Bettys jetty on gear down, a possible state Government funded port authority development, state gov driving departments to regional centres, crap loads of office space currently empty, another 150,000 sqm to come online this year, and what’s our council driving for, you guessed it more office space. Why, who knows? So retail is possibly at it’s all time low, now office rentals is tanking Perth over and Freo council sees fit to lock in more office development with their city planning.
When will the Kings SQ project start, this is what the city promised would revitalized Fremantle and carry us forward to a great new future, or are they whipping a dead horse?