Lease to legal firm and redevelopment options to generate investor interest
A sales campaign for an office building with a lease to a national legal firm will test the market for entry-level leased investments in Perth’s commercial property market.
The two-level building at 119 Newcastle Street has 480sqm of office space and a two-year lease with renewal options to Shine Lawyers.
It has been listed with Colliers International’s Shane Isaacs who said leased commercial buildings in the city were tightly-held and local investors were expected to feature prominently in the sale.
“With rent of $133,330 per annum and the CBD and Northbridge on its doorstep, this well-located building with four parking bays offers investors an accessible entry point into Perth’s commercial property market,” Mr Isaacs said.
“The RBA has signalled that low interest rates could be in place for an extended period and in that environment, commercial property yields are likely to remain compressed and capital will continue to chase well-leased investment assets.”
The property has a land area of 369sqm which Mr Isaacs said would also make it eligible for a future redevelopment. It will be sold by offers invited.