Wednesday 6 September 2023
503 Murray Street sells for $33.225 million in Perth’s largest CBD transaction this year
The off-market sale of an A-grade property in Murray Street for $33.225 million – the largest Perth CBD sale this year – has bucked the national trend of office gloom, demonstrating the resilience of Perth’s commercial property market.
Sold by independent agency Sterling Property, 503 Murray Street is a seven-storey office building in Perth’s west end with direct access to the Mitchell Freeway and Perth’s office and retail precincts including QV1 and Cloisters.
It is a major sale for newly rebadged Sterling Property, which went independent in July after 10 years as LJ Hooker’s commercial franchisee in Perth.
Sterling Property Senior Partner Jack Bradshaw, who negotiated the sale on behalf of a private seller to Properties & Pathways, said it underscored the comparative strength of Perth’s office market, at a time when other capitals were struggling.
“One of the main factors that appealed to the buyer was that the property, which is just over a decade old, was well built and maintained. In addition to that the improvement in the office leasing market in Perth has been well-documented and I could talk with confidence to this,” Mr Bradshaw said.
“WA’s resource sector has been very resilient and particularly active recently within the western end of the Perth CBD. Perth, comparatively, has also not had to deal with the negative effect of the work-from-home trend which has led to a heightened demand for fitted out quality office space.
“A major feature of 503 Murray Street, which is to be now known as ‘Westend on Murray’, is that it has contiguous fitted-out side core floor plates, which is currently in low supply in the Perth CBD office market.”
Areas available start from 327sqm, extending up to expansive full floors of 1,180sqm, or the entire 7,299sqm building for businesses with larger requirements.
The sale between two Perth-based syndicators will help to reset the lease profile of the building and deliver businesses with a unique choice in a tightening leasing market.
While the property has been well-maintained since it was built in 2009, the buyer has committed to significant upgrades including a revamped lobby with contemporary design, upgraded end-of-trip facilities to enhance the experience for tenants, a speculative fit-out on Level 6, and improved sustainability measures.
Managing Director of Properties & Pathways Cal Doggett said the building’s location was a key factor in the purchasing decision.
“We identified 503 Murray Street for its outstanding building fundamentals and its sought-after location, access and carparking attributes. Our job is to identify value and then build a strategy to unlock this value during our ownership period. 503 Murray Street presented us the perfect opportunity to do just that, in our own backyard,” Mr Doggett said.
“We are forever grateful for our loyal investor base who supported our vision to rejuvenate this asset and comprehensively reposition it in the improving Perth office market.
“Rather than overreacting to the gloomy office headlines from the Eastern states, we are acutely aware of the very positive sentiment in the Perth office market and wholeheartedly believe this asset will over-deliver for our investors with the right strategy implemented and the right select team of professionals to bring it to life.”
Tenants can benefit from links to public transport, parking bay allocations, and additional parking available at nearby QV1 and Elder Street car park. It is 200m from childcare facilities and close to a number of food and beverage options.
The building is currently NABERS and BEEC rated with a roadmap in place to transition the property into a carbon neutral building in future.
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