UPDATE 10.45am: The Metropolitan Redevelopment Authority is relocating to the CBD with a 15-year lease for 2000sqm headquarters at the long-vacant GPO Building in Forrest Place.
The move will position the development agency between two of its key city projects -Perth City Link and Elizabeth Quay and allow it to consolidate staff from three Perth offices.
MRA chief executive Kieran Kinsella said the leasing deal also allowed the agency to occupy a 102sqm ground-floor space at the building, for just the cost of outgoings as part of Australia Post's strategy to activate the renovated building.
The MRA will use the space to set up interactive display models of its projects.
"Australia Post has had some difficulty activating that space but we think when work finishes at one40william, the flow of people between Forrest Place and William Street will come back to life and should be very good," he said.
"In the end, if Australia Post gets someone who wants the space we will have to then make a decision to stay and pay full rent or hand over the space."
The MRA, based at the former Union Bakery building on Lynsey Street, expects to move into its new office in April.
"The array of staff that we need to support and operate a more sophisticated business model means we've got to the point where we have outgrown our existing space," Mr Kinsella said.
"When we do place- making there are lots of elements of our business working together and having them all in the one place means they can operate more effectively."
The MRA expects to announce the preferred buyer for the two sites on the eastern side of Elizabeth Quay, the hotel at lot nine and at lot 10, the residential tower, soon.