Western Australia Leads in Industrial Growth Across 2025

Western Australia’s industrial property market has surged to the forefront in 2025, outperforming most of the country in both investor demand and rental growth. As vacancy rates tighten and development-ready land becomes harder to find, Perth and surrounding hubs have become hotspots for national capital. With elevated interest from eastern states investors and ongoing infrastructure investment, WA is now seen as one of the most strategic markets in the country for logistics, warehousing, and large-format industrial property.

Tight Supply Is Driving Urgency

Limited availability of developable land across Perth’s established industrial zones has created a competitive environment for tenants and developers alike. This scarcity is putting upward pressure on pricing and accelerating decision-making.

• Core precincts such as Canning Vale, Jandakot, and Welshpool are facing historic lows in vacancy rates, with modern space difficult to secure.

• Developers are being pushed toward final infill parcels and value-add opportunities to meet surging tenant requirements.

• Landlords are commanding longer lease terms and stronger covenants as businesses compete for a shrinking pool of space.

Eastern States Capital Is Flowing In

With tighter yields and more cautious growth in Sydney and Melbourne, investors from the east coast are now aggressively targeting industrial assets in WA. The spread on returns is drawing institutional and private capital westward.

• Yield spreads between Perth and the east coast remain attractive, particularly for securely leased new builds.

• Portfolio buyers and REITs are prioritising WA in acquisition strategies to balance out their eastern exposures.

• Many local deals are now transacting with eastern-based buyers, even on mid-size sites and secondary assets.

Infrastructure Is Fueling Future Growth

Major infrastructure upgrades in road, rail, and port access are improving WA’s logistics competitiveness. This is having a direct impact on industrial land value and suitability for future projects.

• Freight corridors like Tonkin Highway, Roe Highway, and Leach Highway are being upgraded to support growing logistics volumes.

• Port-centric development near Fremantle and Kwinana is increasing in value due to improved intermodal access.

• Airport-adjacent zones are emerging as high-demand industrial hubs for distribution, aviation logistics, and cold storage.

Rental Growth and Yields Are Outperforming

WA continues to outperform national averages on rental growth, particularly in new construction and modern high-clearance warehouses. Yields remain firm and relatively appealing in the national context.

• Perth industrial rents grew strongly through 2024 and into early 2025, particularly in sub-5,000sqm tenancies.

• New leases are achieving record rates in many precincts, helped by scarcity and rising construction costs.

• Yields remain stable in the 5.25% to 5.75% range for quality stock, with room for tightening depending on lease terms.

Development Supply Remains Constrained

Despite strong tenant demand, speculative development is still lagging due to rising construction costs and limited land options. This is placing upward pressure on both rents and pre-commitment activity.

• Most projects reaching completion in 2025 were pre-committed, leaving few speculative options for new tenants.

• Construction firms are focused on D&C packages with secure funding, limiting overall volume of speculative builds.

• Developers with access to land and finance are well positioned to capture demand in 2025 and 2026.

Opportunity Lies in Early Movement

WA’s industrial market may be peaking, but the runway for growth remains. Stakeholders who move quickly can take advantage of high competition and value growth in emerging corridors and land-scarce zones.

• Mid-ring suburbs are seeing rezoning interest and early-stage developer activity as inner-ring space is exhausted.

• Owner-occupiers are being priced out of traditional areas and shifting to outer industrial estates with access to new infrastructure.

• Investors are targeting long-term holding strategies to capitalise on low vacancy and sustained tenant demand.

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we help you capture momentum in fast-moving markets like WA. Whether you’re releasing a new estate, leasing built form space, or seeking investors for your next industrial project, our full-stack marketing, 3D renders, and investor-grade IMs give you the tools to sell smarter and faster.
Talk to us about how we can support your next Western Australia industrial campaign today.