Mid-a notable shift in Perth's commercial property market, C-grade buildings face heightened competition from premium and A-grade office spaces. As the Property Council of Australia reported, vacancy rates in the CBD are climbing to 15.5%. Therefore, building owners must find ways to make their properties more appealing to potential tenants. The key to staying competitive lies in strategic upgrades that transform aging, underutilised spaces into attractive, functional workplaces.
Landlords who aim to attract and retain commercial tenants enhance their buildings with upgraded lobbies, new end-of-trip (EOT) facilities, and ready-to-move-into show suites of various sizes, which are more attractive to potential tenants. A standout example of a successful upgrade is the transformation of 40 Kings Park Road in West Perth. This project serves as a model for revitalising spaces. Here, Hub Interiors undertook a comprehensive refurbishment project for WA Commercial Real Estate, transforming the property into a modern, attractive space.
The primary objective was to elevate the building's amenities and facilities to enhance tenant satisfaction and attract premium occupants. This goal was undoubtedly achieved, with the icing on the cake being the transformation of a previously neglected rooftop into a dynamic, conversation-starting feature: a rooftop basketball court.
This bold design, including the rooftop entertaining area and basketball court, has added a unique amenity and given the building a distinctive edge in the leasing market. Daniel Sanzone of WA Commercial Real Estate shares his success story, "The rooftop entertaining area and basketball court have made our property far more attractive. It's become a key selling point, offering tenants something different."
In addition to the rooftop upgrade, Hub Interiors revitalised the ground-floor lobby and feature entry statement. The bathrooms and stairwells were all refurbished to quality, high-end standard, and contemporary (EOT) facilities added to the building. These new facilities cater to the needs of modern professionals and include chic change rooms and showers.
As Perth's commercial property market shifts, it's clear that occupants seek more than just office space; they prioritise environments that enhance the importance of work-life balance and well-being. This awareness is crucial for property owners to stay competitive in the market.
Rick McKenzie, Head of Office Leasing WA at Knight Frank, explains, "Tenants are willing to pay more for high-quality office space with standout amenities. C-grade buildings that fail to upgrade amenities risk less occupancy." For property owners, investing in the necessary upgrades to buildings is not merely about aesthetics; it's about boosting their assets' long-term value and marketability.
Projects like 40 Kings Park Road in West Perth demonstrate how creative, well-executed refurbishments and spec fit-outs can transform an older building into a desirable space that attracts and retains tenants. The innovative addition of a rooftop basketball court provides an exclusive recreational area for tenants. It significantly enhances the building's overall value, proving that thoughtful upgrades bring competitive advantages in a challenging market.
