RESHAPING THE CITY: PERTH
Perth’s CBD (as defined by the PCA) prime office market is shaped by a highly concentrated tenant base. Four sectors dominate: professional services (330,000 sqm), mining – including oil and gas (329,000 sqm), government – both state and federal (195,000 sqm), and financial institutions (145,000 sqm). Together they account for close to one million square metres, which is the bulk of CBD demand.
Within the top 50 tenants by occupied area, who occupy more than 650,000 sqm (over half of prime stock), mining emerges as the clear leader at 269,000 sqm, followed by government at 173,000 sqm. Professional services and finance are significant in aggregate but play a smaller role at the very top end. Unlike Sydney and Melbourne, where banks define CBD demand, Perth’s gravitational centre is mining, with professional services clustering around it, while government is more dispersed and influential outside the core. Return-to-office policies further distinguish Perth. Among the top 50 tenants, 95% have soft or no mandates, concentrated in mining, energy and government, banks stand out as the only major group with strict enforcement.
One reason is Perth’s consistently high physical occupancy, among the highest of any Australian CBD, which reduces the need for hard mandates. Mining firms go further, trialling compressed weeks and nine-day fortnights for corporate staff. These policies have not yet cut space requirements, but they highlight a paradox: the largest occupiers anchoring the CBD are also the most flexible. Government adds weight to this softer profile. With nearly 200,000 sqm of prime space, it is Perth’s second-largest prime office occupier, but its footprint lies mostly outside the core. This contrasts with mining, which dominates the core and shapes surrounding demand. Financial institutions, while smaller in total space, concentrate in a handful of towers.
04 MINING FLEXIBILITY: THE PARADOX OF MANDATES
CHART 8
PRIME OFFICE OCCUPANCY BY INDUSTRY
2%
3%
10%
Professional Services
4%
27%
Mining
Public Sector
Financial and Insurance
12%
Real Estate
Power and Water Services
Construction
16%
27%
Others
Source: Cushman & Wakefield Research
CUSHMAN & WAKEFIELD | 15
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