The Cloisters complex, including 200 St Georges Tce, 863 Hay Street and the Cloisters retail arcade in the Perth CBD, is proving to be well-positioned for growth in an otherwise challenging Perth property market. The complex’s average vacancy rate hit a record low 4.8% in May of 2017, a significant achievement when considering that Perth CBD vacancy rates are at the highest they have been for a quarter of a century.
In January 2017, independent research company Y Research found the Perth CBD vacancy rate was at a record high 25.2%. They connected much of the 825,000sq m of vacant office space to recent downsizing in the iron ore and engineering sectors, combined with an influx of new office supply.
Beck Advisory Managing Director, Hamish Beck, attributes the complex’s success to a strategy developed seven years ago to transform a depressed 1970’s complex into a modern, sustainable workspace and vibrant urban public space. The three-year, $70million transformation, managed by Beck Advisory on behalf of the Perth Diocesan Trustees, has propelled Cloisters to stand the test of time in an otherwise trying market.
The Cloisters redevelopment strategy has been integral in attracting and retaining tenants. Our revitalised design and diversification in tenants, particularly in our retail arcade, sets us apart from other Perth commercial properties. Without the excellent work of Jones Lang LaSalle and CBRE, who are jointly appointed to manage the leasing of Cloisters office space, we would not have reached this outcome.
Improvements continue, with the historical two-storey Victorian brick building at 200 St Georges Terrace, built in 1858 and one of Perth’s oldest buildings, currently undergoing an extensive $600,000 refurbishment.