Perth Industrial Vacancy Hits Record Low — Defies National Trends

In Q2 2025, Perth industrial vacancy fell to a staggering national low — dipping below 0.8% and creating one of the tightest leasing markets in Australia. While cities like Sydney and Melbourne are seeing a gradual balance return between supply and demand, Perth is facing a very different landscape. Industrial land shortages, delayed new supply, and heightened demand from mining, logistics, and manufacturing have created a squeeze that’s driving rental growth, increasing pre-commitment activity, and reshaping how landowners and tenants approach deals.

Vacancy Compression in Perth’s Core Industrial Zones

The vacancy compression isn’t spread evenly — it’s most visible in strategic freight and logistics corridors that service both metro and regional markets. Assets under 10,000sqm are almost completely absorbed, and even heavy industrial locations with traditionally higher turnover are now sitting empty for only weeks, not months.

• Perth industrial vacancy below 0.8% — lowest of any capital city in Australia

• No new speculative completions in key zones for over 12 months

• Prime grade stock is nearly fully leased across major transport corridors

• WA supply chain resilience driving long-term leasing from logistics and 3PL

• Existing occupiers expanding footprints before lease expiry to avoid lockout

• Small and mid-tier units (<5,000sqm) in especially high demand across metro

Where the Pressure Is Most Intense in Perth

Certain suburbs are being hit hardest by the vacancy crisis. These areas combine proximity to freight networks, availability of industrial zoned land, and high relevance to warehousing, transport, and materials handling.

• Forrestdale Business Park West: Recent titles snapped up pre-build; strong D&C pipeline

• Wattleup / Latitude 32: Corridor growth from Rowley Road upgrades and new estate launches

• Kwinana: Heavy industrial operations securing long-term footprints amid infrastructure upgrades

• Wangara / Neerabup: Low churn market, high demand for trade and small warehousing

• Canning Vale: Perennial low-vacancy area due to central location and multi-industry appeal

• Hazelmere: Defence and logistics-linked demand driving leasing pressure

What It Means for Rents, Lease Terms, and Asset Value

As availability dries up, market dynamics have shifted firmly in favour of landlords. Net effective rents have jumped sharply, incentives have nearly vanished, and short timeframes to lease-up are prompting aggressive negotiations and pre-leases on unbuilt stock.

• Prime industrial rents in Perth up 18% YoY as of June 2025

• Incentives down to <5% in core areas — many deals struck at face value

• New-builds commanding record pre-lease pricing, often at speculative rates

• Existing industrial landlords extending lease terms and raising mid-term reviews

• Valuations up on income performance — even strata units attracting investor interest

Demand Segments Driving the Squeeze

Understanding what’s behind the demand spike helps clarify why vacancy will likely remain low through 2025 and beyond. WA’s unique resource base, freight role, and government infrastructure push have combined to create structural strength.

• Mining services: Expansion of Pilbara operations fuelling metro warehousing demand

• Logistics / 3PL: Multi-national freight and delivery companies expanding fulfilment networks

• Manufacturing: Reshoring and local capability boosting space demand

• Construction: Industrial supplies and civil contractors seeking staging sites

• Trade & Distribution: Ongoing growth in residential corridor fuels SME demand

Why Landowners Need to Act Now

For landowners, the current climate is ideal — but capitalising on it requires readiness. Presenting your land or planned development as a visualised, investable product can significantly shorten timeframes and unlock better terms.

• Use aerial 3D renders to show how your site fits within the regional context

• Map power, roads, buffers and drainage visually to reduce tenant uncertainty

• Showcase multiple building outcomes: D&C, strata, build-to-lease

• Highlight flexibility — multitenant configurations or staging

• Include development timelines, soil and zoning data in IMs

• Build investor confidence with lease comparables and performance metrics

Market Outlook for the Next 12–24 Months

With no major speculative supply expected until 2026, the market will remain tight well into next year. Any titled land or DA-approved sites are now in the spotlight, and Perth’s industrial property is firmly on the radar of national investors.

• Sub-1% vacancy expected to hold through 2025 based on current pipeline

• Up to 300,000sqm of unsatisfied tenant requirements in the Perth metro

• National REITs and logistics groups targeting Perth assets for balance sheet stability

• Government investment in roads and freight corridors driving long-term confidence

• Industrial landowners seeing values increase 15–25% depending on location

How Commercial Property Marketing Can Help

We help Perth landowners, agents and developers stand out in a fast-moving, low-vacancy market. Our 3D visualisations, interactive IMs, drone overlays and stage planning services are tailored to showcase the full development potential of your site — and convert interest into action.