Chevron has signed a 10-year lease agreement for the entire 14-level Dynons Plaza office tower, currently under construction at 905 Hay Street, in what is likely to be seen as a vote of confidence for the WA economy.
The A-grade boutique office development, near the Woodside building, contains about 13,000 square metres of office space and is expected to be completed in the second quarter of 2010.
Chevron has leased all 14 floors, allowing it to accommodate about 750 people.
Dynons Plaza will provide Chevron with room for future employment growth and is located just a block away from its current home at QV1 at 250 St Georges Terrace.
"As our Australian operations progress, we now have a portfolio of properties in Perth to accommodate business growth," Chevron Australia managing director Roy Krzywosinski said in a statement.
Industry sources say the deal could be the biggest pre-commitment office leasing deal of the year because of the lack of new supply of this size likely to come on to the market.
The property on which the tower is being built runs from 899 to 919 Hay Street and is owned by Knoxville, a subsidiary of Singapore-based luxury hotel operator Stamford Land Corporation.
In a statement, Stamford said the expected annual net rental income for the whole property, which includes the Dynons office tower and three other buildings, is about $A9.5 million.
In 2007, Stamford scrapped plans for a five-star hotel on the site in favour of a commercial office development, citing more attractive returns from office rents.
WA Business News understands the leasing deal was done through Colliers International.
Colliers director of office leasing Ian Campbell declined to comment.
