The sale, negotiated by Stephen Harrison of RWC WA, reflects a 7.5 per cent passing yield and a rate of $5,234 per square metre, a strong result for a traditionally slower-moving asset class in Western Australia.
The modern 363-square-metre office is situated within a well-maintained commercial building constructed in 2007, located just metres from both the Daglish and Subiaco Train Stations. The property is fully leased to an established electrical engineering and design firm until 2029, offering the buyer immediate and secure rental income of $142,455 per annum plus outgoings and GST.
The tenancy is supported by a high-quality internal fitout and a rare allocation of 10 secure car bays, including both single and tandem configurations, an unusually high parking ratio for the area.
“Office as an asset class has traditionally been unpopular with investors, but the landscape is shifting,” said Mr Harrison. “Subiaco and surrounding areas are seeing a resurgence of interest, particularly from Eastern States buyers who are actively seeking stable, high-yielding investments in WA.”
“Offices will perform well over the next 5 years, as the limited construction pipeline will mean there is an increased demand for existing office stock”
“This particular property stood out due to the secure long-term lease, the excellent location, and its functional layout. It offered the kind of risk profile that appeals to SMSFs and private investors looking for consistent returns without the volatility.”
The deal was marketed through standard commercial channels and generated solid traction within its target buyer pool. The seller, a private WA-based owner, was pleased with the result.
Mr Harrison noted that the renewed energy in Subiaco, which has been the focus of recent media coverage, has had a tangible impact on buyer sentiment.
“Subiaco is once again becoming a vibrant commercial hub,” said Mr Harrison. “The combination of lifestyle amenity, strong transport links, and increasing commercial activity is drawing both tenants and investors back to the area. We’re seeing it across multiple asset classes, not just retail and hospitality, but also office strata like this one, which used to be much harder to shift.”
This transaction adds to the growing list of recent sales in Subiaco, cementing its return as a desirable commercial precinct for capital-seeking buyers from across the country.
