QUBE backs Subiaco as resources hub amid suburb's ongoing revival
Subiaco based Qube Property group believes the suburb is well positioned to rebound strongly as the WA property market continues to gather momentum.
The WA owned and run group, which last year celebrated 25 years of operation, currently has more than 14,000 sqm of commercial office space across Subiaco and West Leederville and is actively looking to expand its footprint in the suburb it has called home since 2011.
Qube Director Capital and Equity, Geoff Davieson, said Subiaco had seen a strong resurgence in popularity in recent years as a growing number of significant resource sector operators made the move from neighbouring West Perth and the CBD.
Mr Davieson said that while Subiaco had suffered as a result of the closure of Subiaco Oval and some key operators in recent years, it was benefiting from the current boom in the resources sector with key players such as Norther Star, Newmont, Newcrest, Regis Resources, AIC Resources and Australian Potash just a handful of those who are Subiaco based or have relocated to Subiaco in recent years.
He said many, such as the Roberts Road based-Perseus Mining, had expanding their existing footprint, or were looking to, to cope with the rapid expansion in staff numbers as a result of the current mining boom.
“Subi is really undergoing a significant resurgence after being, rightly or wrongly, much maligned in recent years.
“It is becoming something of a 2020’s mining hub, drawing key tenants away from West Perth which has traditionally been home to many of the WA resource sector’s key players,” he said.
“We currently have an occupancy rate of 100% across our Subiaco assets and hence are looking for suitable sites and assets that will only further our investment and commitment to Subiaco and its future in the long term. The challenge is finding them.
“As a commercial precinct, it has many factors going for it that make it a great place to do business as well as to live, eat and play.
“From a commercial perspective, the rents in Subiaco remain very competitive and with the addition of One Subiaco and the recent refurbishment of the Subiaco Hotel you are really seeing the suburb come back to life,” he said.
Mr Davieson said that the council also played a key role in ensuring Subiaco continued to develop as a commercial hub outside the CBD as well as a hospitality and retail centre.
He said Mayor Penny Taylor was committed to reducing red tape so that Subiaco could continue to attract business and development.
“I think that the addition of a CAT bus service connecting Subi with West Perth and the CBD would really help cement its ability to continue to attract ongoing investment and pull other potential commercial tenants away from West Perth and the CBD.
“I definitely think it’s something the Subiaco council should consider and that would help its ongoing resurgence.”
He said the parking ratios in Subiaco were another big plus drawing in commercial tenants with an average of one bay per 40sqm compared to one per 200sqm on average in the CBD. And, unlike the CBD and West Perth, there is no additional parking levy for Subiaco car bays which adds some $1,200 per bay per year.
Mr Davieson said Qube’s long held strategy of offering tenants the personal touch of dealing direct with the company’s founders and partners as owners and landlords had played a large part in attracting and retaining long term quality tenants.
He said Qube had also acted swiftly when the pandemic first hit, negotiating rental assistance and reductions while there was a high level of economic uncertainty which had only served to strengthen its relationships with its tenants.
Mr Davieson said only a few key undeveloped commercial lots remained in Subiaco that represented opportunity to further build on the recovery and revitalisation.
“We are always looking for acquisitions that represent good value for our investor base and Subiaco falls within that target market,” he said.
“We’ve been headquartered here since we completed our building in October 2011 and we have watched the confidence levels rise. Subiaco as a suburb has seen a lot of commercial investment of late and the addition of the State Government-led Subi East development which involves 35 hectares of land in and around the Subiaco Oval precinct will only add to that.
Qube is landlord to more than 60 tenants across WA and the developer and owner of more than 50,000sqm of office, retail and industrial property across its investment portfolio.