CBRE

FIGURESIPERTHCBDOFFICEIQ32025

Tighteningvacancyoutlookassupplygaphitsthe

PerthCBDofficemarket

vN,e5tAb(2s△1e,t(,2△cc1%2H24)△(--oqy)m

Note:Arrowsindicatechangefrompreviousquarter.

FIGURE1:SummaryofKeyIndicators

KeyPoints

PerthCBD

3Q25

2Q25

3Q24

Q-o-QChange

Y-o-YChange

-Strongenquiryvolumewasrecordedin3Q25totallingc.89,000sqm,38%higherthanthesameperiodlastyear.Thenumberofenquiriesduringthequartertotalled140,up26%y-0-y.

PrimeNFR$726/sqm$721/sqm$697/sqm+0.7%+4.2%

-Grossnewleasingvolumesofc.14,500sqmrecordedduring3Q25,largelyin-linewithlastquarterandabovethelowvolumeofc.6,000sqmin3Q24(newdeals≥500sqm).

Incentives

47%

47%

47%

Stable

Stable

-PrimeCBDaveragenetfacerentsincreasedby0.7%q-0-qand4.2%y-o-yto$726/sqm.Primeincentiveshaveremainedsteadyq-0-qaveraging47%.

PrimeNER$388/sqm$386/sqm$373/sqm+0.7%+4.1%

-Netabsorptionof-4,599sqmrecordedfor1H25,bringingtherolling12-monthnetabsorptionto20,587sqm,whichislargelyinlinewiththe20-yearannualaverageofc.20,000sqm.

PrimeYields

7.7%

7.6%

7.3%

+8bps

+40bps

-Thevacancyrateincreasedto17.0%in1H25,upfrom15.1%in2H24.Vacancycreatedfrom

completionofNinetheEsplanadeandthe-4,599sqmofnetabsorptionledtohighervacancy.

-Primevacancystandsat15.3%(2H2412.3%)andsecondaryvacancystandsat20.2%(2H2420.3%).

Source:CBREResearch

-ThePublicTransportAuthorityofWA'spurchaseof34-50StirlingStreetfromElanorInvestorsfor$27.5millionwastheonlytransactionrecordedin3Q25(sales≥$5million).

-Primegrademidpointyieldsincreasedby8bpsq-0-qtoanaverageof7.7%.

1

CBRERESEARCH◎2025CBRE,INC.

FIGURESIPerthCBDOffice|Q32025

2CBRERESEARCH◎2025CBRE,INC.

EconomicOverview

WA'sdomesticeconomyseeingsolidgrowth

WA'seconomyasmeasuredbyGrossStateProduct(GSP)isestimatedbyDeloitteAccessEconomicstohavegrownmodestlyby0.2%inFY25(FY24=0.5%andFY23=3.7%),asadecreaseinexportsduetopoorweatherandsoftercommoditypriceshaveweighedoninternationaltrade.EconomicgrowthinWA'sdomesticeconomy(excludinginternationaltrade)hasbeenmorerobust.Domesticeconomic

growthasmeasuredbystatefinaldemand(SFD)increasedby2.9%y-0-yintheJune2025quarter,

abovetheaverage2.3%y-0-ygrowthrecordedacrossthemajorstatesofNSW,VIC,QLDandSA.Asof3Q25DeloitteAccessEconomicsforecastsSFDtogrowby2.2%inFY26and2.8%inFY27.Continuedgrowthinconsumerconsumption,dwellinginvestmentandbusinessinvestmentspurredbyWA'sfast-growingpopulationareexpectedtosupportdomesticeconomicgrowth.

FIGURE2:StateFinalDemandGrowthY-0-YJune2025Quarter(seasonallyadjusted)

3.5%3.0%2.5%2.0%1.5%1.0%0.5%0.0%

SAWAQLDNSWVIC

Source:ABS,CBREResearch

Businessinvestmentasmeasuredbyprivatecapitalexpenditureincreased8.8%y-0-yintheJune2025quarter,totalling$12.7billion.Miningindustrycapitalexpenditurewhichaccountedforcloseto70%ofthetotalprivatecapexsawgrowthof6.9%y-0-yintheJune2025quarter,totalling$8.7billion.PrivateminingcapitalinvestmentinWAhasseensignificantgrowthsincereachingatrougharound2019.

Privateminingcapitalexpenditureinthe12monthsendingJune2025hastotalled$33billion,whichis94%higherthanthe12monthsendingJune2019.

LowunemploymentandrobustpopulationgrowthspurringWAhouseholdspending

LabourmarketsacrossAustraliaremainstrongrelativetohistoriclevels.InWA,theunemploymentrateinAuguststoodatjust3.8%(August2024=3.9%),whichisthelowestunemploymentrateacrossthemajorstates.Thiscoupledwithongoingrobustpopulationgrowthissupportingconsumerspending

whichisgrowingatthefastestrateinthecountry.WAhouseholdspendingincreasedby7.8%y-0-yinthethreemonthsendingAugust2025,wellabovethenationalgrowthof5.1%y-0-yoverthesame

period.

FIGURE3:HouseholdSpendingY-o-YGrowthbyState(seasonallyadjusted)

QLD

■3mthsendAug-24

SA

WA

—10-yearAverage

NSWVIC

■3mthsendAug-25Source:ABS,CBREResearch

WApopulationcontinuestogrowatthefastestpacenationally

Withastrongjobmarket,WAisattractinginternationalandinterstatemigrationwiththepopulation

growingatthefastestpacenationally.AccordingtothelatestdatafromtheABS,WA'spopulationgrewby2.3%y-o-yintheMarch2025quarter,abovethe1.6%growthrecordednationally.Overthe12monthsendingMarch2025WA'spopulationgrewbyc.67,500personswith61%(c.41,400)comingfrom

internationalmigration,17%(c.11,700)frominterstatemigrationand21%(c.14,500)fromnaturalgrowth.

FIGURESIPerthCBDOffice|Q32025

3CBRERESEARCH◎2025CBRE,INC.

LeasingVelocity

Strongsuburbantenantrelocationsin2025-expectedtoliftnetabsorption

During3Q25c.14,500sqmofgrossleasingvolumeswererecordedinthePerthCBD(new

deals≥500sqm),largelyin-linewiththec.15,000sqmrecordedinthepriorquarterandwellabovethelowvolumeofc.6,000sqmrecordedin3Q24.Therolling12-monthvolumeofnewdealstotalsc.72,500sqm,in-linewiththe10-yearannualaverage.Therehavebeen42new

deals(≥500sqm)recordedoverthepast12months,justbelowthe10-yearannualaverageof

46deals.

Strongenquiryvolumewasrecordedin3Q25totallingc.89,000sqm,38%higherthanthe

sameperiodlastyear.Thenumberofenquiriesduringthequartertotalled140,up26%y-0-y.Overthepast12monthstherehavebeenc.275,500sqmofenquiries,5%belowthehistoric

annualaverageofc.290,000sqm.

In2025yeartodate,leasingactivityhasbeenlargelybeenconcentratedintheAgradeandsecondarygradepartofthemarketaccountingfor38%and43%ofthetotaltransactions,respectively.PremiumgradeandA+gradehaveeachaccountedfor10%ofthetransactions.AmorecautioustenantenvironmentcoupledwithstrongsuburbantenantrelocationsintoBgradeCBDassetshavecontributedtothis.

Suburbantenantrelocationshaveaccountedfor29%ofthetotaltransactionsand21%ofleasingvolume(sqm)in2025.Thisamountstoc.10,500sqmofofficespaceleasedandshouldcontributetoimprovednetabsorptionasthesetenantsmovetowardsphysicaloccupancyintheCBD.

FIGURE4:PerthCBDleasingvolumes,500+sqmnewdeals

1Q20

2Q20

3Q20

4Q20

1Q21

Q21

3Q21

Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

2Q25

3Q25

60,000

50,000

40,000

30,000

20,000

10,000

0

Volumesqm

25

20

巧

10

5

0

Number(RHS)

---Average

Volume

sqm

Source:CBREResearch

FIGURE5:PerthCBDCBREenquiryvolumes

1Q20

2Q20

3Q20

4Q20

1Q21

Q21

Q21

Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

2Q25

3Q25

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Volumesqm

160

140

120

100

80

60

40

20

0

Number(RHS)

---Average

Volume

sqm

Source:CBREResearch

FIGURESIPerthCBDOffice|Q32025

NetAbsorption

Prioryearleaseactivitydrivesstrongpremiumgradenetabsorption

Netabsorptionfor1H25totalled-4,599sqm,moderatingfromthe25,186sqmrecordedduring

2H24(whichwasdrivenFortescue'stake-upofthec.22,000sqmat256StGeorgesTerrace).Thisbringsthe12-monthnetabsorptionto20,587sqm,whichislargelyinlinewiththe20-yearannualaverageofc.20,000sqm.

Premiumgradenetabsorptionwasthestrongestat23,084sqmfor1H25,withtheleasing

completedintheprioryearatthenewlycompletedNineTheEsplanadedevelopmentcontributingtothestrongdemand.Thisiswellabovethepremiumgrade20-yearsix-monthaveragenet

absorptionofc.5,000sqm.

NetabsorptionforgradeAtotalled-28,517sqm,withthetake-upofspacefromtenantsmovingtoNineTheEsplanadefromgradeAbuildingscontributingtothesofternetabsorption.Forthe

secondarygrademarketnetabsorptionwasjustpositivetotalling834sqmfor1H25.

FIGURE6:PerthCBDHistoricalPrimevsSecondaryNetAbsorption

NetAbsorption(sbm)

2000

2001

2002

2003

2004

2005

2007

2008

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

900Z

600乙

150,000

100000

50,000

0

-50,000

-100,000

-150,000

-200,000

PCAboundarychange

52H1

■Prime■Secondary

Source:PropertyCouncilofAustralia,CBREResearch

FIGURE7:PerthCBDHistoricalNetAbsorption

NetAbsorption(sbm)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2017

2018

2019

2020

2021

2022

2023

2024

1H25

9LOZ

120,000

100,000

80,000

60,000

40,000

20,000

0

-20,000

-40,000

-60,000

-80,000

NetAbsorption

---20yAnnualAverage

Source:PropertyCouncilofAustralia,CBREResearch

4CBRERESEARCH◎2025CBRE,INC.

FIGURESIPerthCBDOffice|Q32025

Supply

NineTheEsplanadedevelopmentdrives1H25supply

Totalsupplyaddedtothemarketduring1H25was35,711sqm,ofwhichmajority(33,554sqm)relatedtoNineTheEsplanade,reachingpracticalcompletioninMay2025.Alsocontributingtothesupplyfor1H25was1,439sqmfromthefullyrefurbishedspaceat8TheEsplanade,inadditionto718sqmfromothersupply.Therewerenostockwithdrawalsrecordedfor1H25.Includingthe256StGeorgesTerracerefurbishmentin2H24(c.23,000sqm)-thisbringstherolling12-monthtotalnetsupplyto56,999sqm,abovethe20-yearannualaveragenetsupplyofc.24,000sqm.

Thesupplyaddedduring1H25wasprimarilyfortheprimegradepartofthemarket(34,272sqm)whichhaspusheduptheprimegradevacancyrate.

Netsupplyforthesecondarygrademarketwasrelativelylowtotalling1,439sqm(8TheEsplanade),leavingthesecondarygradevacancystablefor1H25.

LargesupplygapexpectedinthePerthCBD

ThePerthCBDisexpectedtoseeamajorsupplygapoverthecomingyearswithnonew

developmentsexpecteduntil2030+.Overthepast20yearsthePerthCBDhasaveragednewdevelopmentsupplyofc.32,000perannum.Duetothehighconstructioncostenvironmentandwidegapinmarketvseconomicrents,nonewdevelopmentsarecurrentlycommittedto.Withthefocusonthere-developmentofthePerthConventionandExhibitionCentre,thisislikelytobenextmajorPerthCBDofficedevelopmentandisexpectedtobeunderpinnedbyapre-commitmentfromRioTinto.

ThemajorbackfillspacesupplyincludesInpex'scurrentspaceat100StGeorgesTerrace(c.13,000sqm).ThisisnotexpectedtohaveamajorimpactonthemarketvacancyrateastheJul-25PCAupdateincludedthisspaceasvacant(duetotheircommitmentat9TheEsplanade).

Figure8:PerthCBDHistoricNetAnnualSupply

NetSupply(sqm)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2006

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

1H25

160,000

120,000

80,000

40,000

0

-40,000

---20y

NetSupply

Average

NetSupply

Source:PropertyCouncilofAustralia,CBREResearch

FIGURE9:NewSupplyCompletionsandPipeline70,000

60,000

50,000

40,000

30,000

20,000

10,000

1TheEsplanade

WestraliaSquare2

CapitalSquare3

9TheEsplanade

562WellingtonSt

200StGeorgesTce

100StGeorgesTce

PCEC

0

20232024202520262027202820292030+

CompleteBackfillMooted--20yAverageNewSupply

Source:CBREResearch

Tonote:Mooteddevelopmentsonlyincludethosethatatthetimearemostlylikelytoproceed.

5CBRERESEARCH◎2025CBRE,INC.

FIGURESIPerthCBDOffice|Q32025

6CBRERESEARCH◎2025CBRE,INC.

MarketVacancy

Newsupplydrivesupvacancyin1H25

ThemarketvacancyrateinthePerthCBDincreasedby190bpsduring1H25to17.0%(from15.1%in2H24).Thiswasdrivenbytheelevatedsupplyof35,711sqmandnetabsorptionbeingsoftat-4,599sqmfor1H25.MajorityofsupplywasduetocompletionofNineTheEsplanade.

Notwithstandingthepremiumgradenetabsorptionbeingstrongat23,084sqmfor1H25,thiswasoutweighedby33,554sqmofsupply,whichledtothepremiumgradevacancyincreasingto10.8%,upfrom9.4%lasthalf.

Agradevacancyincreasedby425bpsto18.5%at1H25(upfrom14.2%at2H24).NetsupplyfortheAgrademarketwasmutedatjust718sqmhowever,thesoftnetabsorptionof-28,515sqmresultedinthevacancyincrease.

Forthesecondarygrademarket,giventheminormovementinnetabsorption(+834sqm)andmutedsupply1,439sqm,thevacancyrateremainedstableat20.2%.

Perthsubleasespacedecreasesin3Q25

CBRE'ssubleasebarometershowssubleaseavailabilityinthePerthCBDdecreasingto

c.20,500sqmat3Q25,downfromc.26,000sqmavailableinthepriorquarter.Leasingactivityhasprimarilyresultedintheq-0-qreductionintotalsubleasespaceavailable.Chevronhasc.7,400sqmavailableatOneTheEsplanadewhichaccountsforovertheathirdofthe

availablesubleasespace.

Thesubleasevacancyrateasof3Q25sitsatjust1.1%,indicativeofahealthyleasingmarket.

FIGURE10:SummaryofPerthCBDOfficeMarket

Market/Grade

Stock

(sqm)

Net

Absorption6months(sqm)

Net

Absorption12months(sqm)

NetSupply/

(Withdrawal)6

months(sqm)

NetSupply/

(Withdrawal)12

months(sqm)

Vacancy%Jul25

Vacancy%Jan25

Prime

1,185,170

-5,433

26,391

34,272

56,999

15.3%

12.3%

1,439

-5,804

647,994

-834

0

20.2%

20.2%

Secondary

Total

1,833,164

-4,599

20,587

35,711

56,999

17.0%

15.1%

Source:PropertyCouncilofAustralia,CBREResearch

FIGURE11:PerthCBDOfficeMarketBalance

30%

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

2010201120122013201420152016201720182019202020212022202320241H25

NetAbsorptionNetSupply——TotalVacancy(RHS)—PrimeVacancy(RHS)

160,000

120,000

80,000

40,000

0

-40,000

-80,000

Source:PropertyCouncilofAustralia,CBREResearch

FIGURESIPerthCBDOffice|Q32025

7CBRERESEARCH◎2025CBRE,INC.

RentalPerformance

Tighteningsupplyandhighconstructioncostsexpectedtodriverentgrowth

Averageprimegradenetfacerentsincreasedby0.7%q-0-qand4.2%y-o-yto$726/sqm.Bgradenetfacerentsalsowitnessedasolidincreaseof1.3%q-0-qand5.7%y-o-ytoanaverageof

$494/sqm.CBDBgraderentgrowthhasbeenstrongrecentlydrivenbystrongleasingtransactionactivityinthispartofthemarketduetooccupierrelocationsfromthesuburbanmarkets,which

havelowavailabilityofgoodqualitystock.

Withinprimeassets,thepremiumpartofthemarketsawrentsremainstableduring3Q25,mainlyduetolimitedrecentleasingactivity.Premiumgradenetfacerentscurrentlyaverage$788/sqm

(+2.3%y-o-y).TheA+gradeassetsalsosawsolidrentgrowthasvacancyremainstightinthispartofthemarket.A+gradeaveragenetfacerentsincreasedby1.3%q-0-qand3.5%y-0-yandnowsitat$725/sqm.TheAgradebuildingssawaveragenetfacerentsincreaseby+1.0%q-0-qto

$666/sqm.Agradeassetshaveseenthelargestincreaseinnetfacerentsoverthepastyear,

increasingby7.2%y-0-ydrivenbyhealthytransactionactivity.Themoreuncertaineconomic

environmentoverthepastyearhasresultedincostconscioustenantsseekingmorevalue,whichhasseenahighproportionoftransactionsoccurringintheAgradepartofthemarketand

consequentlyadecreaseinpremiumgradetransactions.Strongtenantdemandforfittedspacesinthecurrenthighfitoutcostenvironmenthasalsoplacedupwardpressureinrents.Additionally,

somechangesinthesamplebasketofAgradeassetscomparedtotheprioryearhavecontributedtoastrongery-0-ycomparison.

Averageincentivelevelsremainedstableq-0-qacrossallgradesin3Q25.PremiumandA+gradeincentivescurrentlyaverage45%,Agradeincentivesareat50%andBgradeincentivesaverage

52%.

ThePerthCBDofficemarkethasastrongrentalgrowthoutlookgiventhesignificantgapthat

alreadyexistsbetweenmarketrentsandeconomicrents,withconstructioncostescalationrates

overthenextfewyearsalsoforecasttobewellabovehistoricrates.Perth'sconstructioncostsareforecasttocontinueincreasingat5%+annuallyoverthenextfewyears(figure13),giventhestrongpipelineofworkfrominvestmentindefence,health,transport,utilities,housingandtighttrade

labourconditionsinPerth.Thisiscompoundedbythetighteningofficesupplyoutlookoverthecomingyearswhichisexpectedtoleadtotighteningvacancy.

FIGURE12:PerthCBDRentandIncentivesbyGrade

PerthCBD

NetFaceRent

(AUD/sqm)

Incentive(%)

NetEffectiveRent

(AUD/sqm)

3Q25

Q-o-QChange

Y-o-YChange

3Q25

Q-o-QY-o-YChangeChange

3Q25

Q-o-QY-0-YChangeChange

Premium788stable+2.3%45%stablestable433stable+2.3%

A+Grade725+1.3%+3.5%45%stablestable399+1.3%+3.5%

AGrade666+1.0%+7.2%50%stablestable333+1.0%+7.2%

AveragePrimeGrade726+0.7%+4.2%47%stablestable388+0.7%+4.1%

BGrade494+1.3%+5.7%52%stablestable237+1.3%+5.7%

Source:CBREResearch

FIGURE13:ForecastConstructionCostEscalationbyCity

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

SydneyMelbourneBrisbanePerth

■2025■2026■2027■2028

Source:CBREResearch,Turner&TownsendQ22025

FIGURESIPerthCBDOffice|Q32025

InvestmentMarket

PerthCBDyieldscontinuetoincrease

InvestmenttransactionactivityinthePerthCBDofficemarketremainedmutedin3Q25withoneminorsalerecorded(transactions≥thanAUD5million).ThePublicTransportAuthorityacquired34-50StirlingStreetfromElanorInvestorsfor$27.5min3Q25.ThisfollowsFifeCapital's

acquisitionof23BarrackStfor$5milliononavacantpossessionbasisinthepriorquarter.

Notwithstandingthelackoftransactioncompletionsyeartodate,therehasbeenaflurryofPerthCBDofficeassetshittingthemarketthisyear,withfurthertransactionactivityexpectedoverthefinalquarter.

Giventhedecreasinginterestrates,thereisgreaterclarityintheinvestmentmarketscomparedto12-18monthsago.TheRBAhascuttheCashRateby75basispointssincethestartof

February2025,andfurthereasingisexpectedoverthecomingyear.Marketexpectationsimplyafurther35bpsofinterestratecuts-asperthe02October2025ASX30DayInterbankCash

RateFuturesImpliedYieldCurve.

During3Q25PerthCBDprimeofficemidpointyieldsincreasedby8bpsq-0-qto7.7%(withthepriorquarteryieldrevisedup).Overthepast12monthsprimeofficemidpointyieldshave

increasedby40bps.Bgrademidpointyieldscurrentlysitat9.0%andhaveseenanincreaseof46bpsoverthepastyear.

MidpointYield

FIGURE14:PerthCBDOfficeYieldsByGradeandChange

80

60

40

20

0

10.0%

8.0%6.0%

4.0%

2.0%

0.0%

A+Grade

◆Q-o-Q

BGrade

AGrade

Change(RHS)●Y-0-Y

Premium

Change(RHS)

■CurrentYield

BasisPointChange

FIGURE15:AustralianCBDMarketsPrimeYield

MidpointYield

Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-06

Sep-10

Sep-11

Sep-12

Sep-13

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

Sep-19

Sep-20

ep-21

Sep-22

Sep-23

Sep-24

Sep-25

10%

8%

6%

4%

2%

0%

SydneyCBDCore—MelbourneCBD·—BrisbaneCBD—lPerthCBD—10yBondYield

Source:CBREResearch

FIGURE16:PerthCBDOfficeSales(≥AUD5million)

AUDMillions

Source:CBREResearch

Source:CBREResearch

8CBRERESEARCH◎2025CBRE,INC.

9CBRERESEARCH