Reshaping the City - Perth

RESHAPING THE CITY: PERTH

CHART 4

PRIME NET FACE RENTAL PREMIUM: HIGH FLOORS VS LOW FLOORS

22%

20%

18%

16%

14%

12%

10%

8%

6%

2022

2023

2024

2025

Source: Cushman & Wakefield Research

03 BEYOND THE GRADE: THE QUALITY DIVIDE

Elevation adds another layer of resilience. High-rise floors show materially lower vacancy and command stronger rent premiums than mid- and low-rise levels. In the core, high floors record just 3% vacancy compared with 6% on lower floors, while in non-core precincts the split is 4% versus 8%. Rental differentials are also widening – premium grade offices show a 20% rent premium for high floors, while A-grade assets record a still

significant 14% premium. This mirrors Sydney and Melbourne, reinforcing that even in Perth’s smaller, more evenly split market, tenants remain highly selective with strong preference for higher floors. Centrality and elevation work together to define the most resilient segment, while non-core assets face structural challenges that will require clear repositioning strategies.

CHART 5

PRIME VACANCY BREAKDOWNS

500,000

6%

400,000

8%

3%

300,000

200,000

4%

100,000

-

Other floors

High floor

Other floors

High floor

Core

Non-Core

Occupied

Vacant

Source: Cushman & Wakefield Research

Tenants prefer the core and higher floors, reinforcing the premium attached to centrality and elevation – with core market absorbing demand and high-rise space commanding lower vacancy and rising rent premiums. KEY TAKEAWAY

CUSHMAN & WAKEFIELD | 11

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