Perth's office market is undergoing a significant shift, as revealed in the latest report by the Property Council of Australia. The report shows a rise in vacancy rates in Perth's CBD, increasing by 0.8%, from 14.7% to 15.5% over six months, even as the national office vacancy rate saw a slight decline from 14.8% to 14.6%.
Despite the increase in vacancies, industry experts remain optimistic, viewing a surge in high-end office space as a positive indicator. Nicola Brischetto, WA Executive Director of the Property Council of Australia, commented, “This increase can largely be attributed to an influx of new high-end space entering the market. It is an encouraging sign for our CBD. Perth still enjoys the strongest work-from-the-office culture in Australia, and there is clearly confidence in the city’s office market.
Ms Brischetto continued, “We’re seeing new office stock come online in the city at a rate far higher than Perth’s historical average, rivalled only by the last mining boom. A majority of that space is on the higher end of the scale, being either Premium or A-grade quality. This will help attract even more workers into the city.”
Hub Interiors, a key player in Perth’s commercial fitout industry, has been at the forefront of responding to these market shifts. Specialising in end-to-end commercial fitout design and construction services, Hub Interiors excels in creating spaces that combine functionality with aesthetic appeal, serving a broad range of sectors from corporate offices to hospitality and medical facilities
Christian Formby, Founder of Hub Interiors Australia, explained how office spaces are adapting to the evolving market: “Reception areas have become unmanned waiting areas, with more space now allocated for breakout and collaboration. There’s a noticeable shift.”
Mr Formby highlighted the increasing importance of hybrid work models. “We are now integrating remote and in-office work, with designated areas for hot-desking, collaborative spaces and quiet zones. There is a stronger focus on employee well-being and retention, creating environments that support both mental and physical health. This includes features like relaxation spaces, wellness rooms, and amenities such as gyms or prayer rooms.
“Tenants are seeking unique designs that make a positive impression on staff and visitors, incorporating key elements like high-end breakout areas, natural light, and advanced technology integration,” he added.
Rick McKenzie, Partner and Head of Office Leasing WA at Knight Frank, provided further insights into the market dynamics, observing a strong interest in high-quality office spaces. “Rents will continue to increase in Prime Grade stock. Over the past three years, most of the demand has been for fitted spaces, with lease flexibility also growing in importance due to national headwinds creating uncertainty.”
Mr McKenzie emphasised the importance of amenities and ‘placemaking’ in attracting tenants. “If the spaces aren’t activated, they won’t be enjoyed. Owners should engage with tenants and stay in touch with their changing needs,” he said.
Asset Enhancement Projects are also being undertaken in the city to make older buildings more competitive in the commercial leasing sector. Hub Interiors has been instrumental in revitalising underused or underperforming spaces within these buildings, converting them into impressive rooftop bars, outdoor terraces, and other modern amenities. These spaces are transformed into more attractive and functional areas, allowing the offices to compete with newer buildings.
A prime example is Hub’s impressive rejuvenation of 40 Kings Park in West Perth. This project enriched the tenant experience by crowning the building with a fully equipped rooftop retreat, complete with a bar, deck, and basketball court.
While office vacancy rates have risen in Perth, the continued investment in high-end, hybrid workspaces—driven by demand—highlights the market’s evolution and resilience. Companies like Hub Interiors are playing a significant role in managing these changes and contributing to the ongoing transformation of Perth’s commercial sector.
