Perth June 2025 Commercial & Industrial Market Update

Perth’s commercial and industrial property sectors continue to outperform expectations in June 2025, cementing Western Australia as one of the strongest growth regions in the country. While other capital cities face oversupply or soft leasing in pockets, Perth’s market is defined by land scarcity, soaring industrial rents, major infrastructure investments, and a mining-fuelled economy driving tenant expansion. From the Western Trade Coast to Forrestdale and Bullsbrook, demand remains strong, with developers, occupiers, and investors competing for land and high-spec assets across both metro and fringe zones.

Industrial Rents Surge as Vacancy Remains Ultra-Low

Perth has now recorded the highest growth in industrial rents nationally for the third consecutive year. With vacancy rates below 1% in core precincts, tenants are paying a premium to secure warehouse space, and developers are responding with build-to-suit projects and stage-based land releases.

• Core industrial zones such as Canning Vale, Welshpool, and Kewdale have seen rents increase by 25–35% over the past 18 months

• Outer metro growth areas including Forrestdale, Hazelmere, and Jandakot are commanding $120–$140/sqm for newly built stock

• Lease terms are extending, with occupiers agreeing to 10+ year commitments to lock in location and secure long-term cost stability

Western Trade Coast Development Attracts National Capital

The Western Trade Coast remains the most strategic industrial and trade-focused region in WA. With government backing, port access, and major infrastructure support, the area is attracting national REITs and fund managers eager to secure long-hold assets in a low-risk, high-return growth zone.

• The Latitude 32 industrial estate in Hope Valley is now nearly fully committed, with new lots released to meet demand

• The Rockingham Industrial Zone is seeing activity across defence, fabrication, logistics, and clean energy manufacturing

• Investors are targeting assets with access to Kwinana port, rail freight corridors, and LNG terminal support zones

Mining Services, Oil & Gas Driving Tenancy Expansion

Perth’s industrial demand is underpinned by its status as the operational centre for Australia’s mining and energy sector. In 2025, commodity confidence remains strong, and service providers are scaling up operations. Warehousing, transport yards, heavy vehicle maintenance, and training facilities are all in high demand.

• Mining-linked businesses are securing premises in Bayswater, Henderson, and Maddington, close to major arterial routes

• Tenants are seeking high-clearance warehousing with dual-access and crane capacity, often with hardstand space

• Land is being snapped up in Bullsbrook and North Ellenbrook, where larger lots are available for staging and fleet management

Airport Precinct and Northern Corridor Heating Up

Perth’s northern industrial expansion is gaining momentum, with areas around Perth Airport, Belmont, and up to Muchea now receiving sustained developer and tenant interest. Improved road networks and long lead times in the south have pushed interest northward.

• The Perth Airport industrial precinct continues to grow, with logistics and food-grade warehouses leading demand

• The Tonkin Highway Extension and NorthLink WA have made Bullsbrook and Muchea highly viable for industrial scale-up

• Speculative builds are occurring in Neerabup and Wangara, where vacant land is scarce and leasing risk is low

Land Scarcity Driving Price Growth Across Metro

Developers and owner-occupiers alike are struggling to secure developable industrial land close to Perth’s core. With limited new zoning and rising construction costs, the value of titled land in active precincts has jumped substantially — and demand remains outpacing delivery.

• Industrial land in Perth’s core markets is now trading at $400–$600/sqm, depending on location and size

• Even outer areas such as Forrestdale and Treeby are achieving $250–$350/sqm, with titled lots receiving multiple offers

• Developers are staging sales to manage supply and create urgency, often with D&C options on offer

Office Market Repositions Around Fringe and Flexible Use

Perth’s CBD office market remains in a gradual recovery, but suburban office zones and fringe commercial precincts are seeing new activity. Owner-occupiers are purchasing office units in locations such as Subiaco, Osborne Park, and Mount Hawthorn, while demand for medical and professional strata suites continues to rise.

• Vacancy in A-grade CBD towers remains elevated, but fitout-ready space with strong end-of-trip facilities is leasing well

• Suburban strata office in locations like South Perth and Fremantle are attracting high-net-worth local buyers

• Co-location with retail and medical services is boosting small-format office leasing in lifestyle-centric precincts

Data Centre and AI Infrastructure Pushing New Land Uses

Perth is emerging as a secondary hub for data centre expansion due to its solar infrastructure, land availability, and subsea cable access to Asia and the Middle East. Developers are beginning to explore digital infrastructure as an alternative land use in large-format zones.

• Suburbs like Belmont, Cannington, and Jandakot are being considered for future data infrastructure footprints

• Power-aligned sites with 400–800MW potential and substation access are being assessed by hyperscale operators

• Developers are beginning to factor in battery storage, solar PPAs, and fibre infrastructure into land pitches

Perth’s Outlook: Scarcity, Scale, and Long-Term Growth

With national investors increasingly looking west for capital deployment, Perth’s appeal continues to grow. Unlike saturated markets in the east, WA still offers land, leasing demand, and long-term structural drivers. Combined with population growth and high business confidence, Perth remains a national outlier — in a good way.

• Vacancy across Perth’s industrial market remains below 1.2%, with pressure continuing through FY26

• Rental growth will remain high, particularly for well-located, high-spec logistics and trade stock

• Suburbs across the south-west and north-east corridors will continue to absorb capital and development pipeline

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we know Perth’s industrial and commercial market firsthand. From Kwinana to Bullsbrook, we’ve helped position estates, pre-lease warehouse lots, and visualise masterplans that drive engagement. Whether you’re selling land, launching a D&C campaign, or seeking tenant interest in a growth corridor, our renders, websites, and marketing tools deliver serious results.