How to Lease and Reposition Your Commercial Property in Perth for 2025

With vacancy rates tightening across key sectors and tenant demand evolving, many property owners in Perth are turning their focus to leasing and repositioning strategies to boost performance in 2025.

This article outlines how to attract quality tenants, maximise rental returns, and future-proof your asset in a changing market—without needing to sell.

Why Leasing Strategy Matters in Today’s Market

Across Perth’s industrial, office, and retail sectors, tenant needs have shifted. Businesses are prioritising functionality, ESG compliance, and transport access. A clear leasing strategy—paired with modern presentation and strong tenant engagement—can transform the long-term value of a commercial asset.

Whether you’re managing a warehouse, office block, or mixed-use site, aligning your leasing strategy with current trends is key to maximising both occupancy and ROI.

Leasing Trends Shaping Perth in 2025 – Industrial leasing remains dominant

Perth’s industrial sector continues to lead commercial performance, especially in logistics and trade-related industries. Demand is strong for sites with easy arterial access and flexible warehousing footprints.

Before targeting new tenants, consider what the market is seeking:

• Warehouses with clear span interiors and roller door access

• Hardstand and laydown areas for equipment or container storage

• Proximity to key freight corridors and transport infrastructure

• Sufficient power and service capacity for light manufacturing

Office market stabilising but evolving

While office demand is more selective, Perth’s market is seeing a flight to quality. Businesses are upgrading to better-located, more energy-efficient buildings.

To attract tenants in this climate, owners should focus on:

• Recent refurbishments or ESG upgrades (e.g. lighting, HVAC, water)

• Smaller, efficient floorplates with natural light and end-of-trip facilities

• Fibre connectivity and tech-readiness

• Flexible lease terms that appeal to growing SMEs or project-based teams

Retail opportunities shifting to essentials

Suburban growth is creating leasing opportunities for retail formats tied to health, food, and services. These uses are proving more resilient than fashion or discretionary retail.

If repositioning a retail tenancy, aim for tenants in these categories:

• Medical or allied health (physio, dentists, GPs)

• QSR/drive-thru operators (especially on corner or high-exposure sites)

• Convenience retail like IGA, bottle shops, and takeaway outlets

• Specialist services that serve local population growth

Signs It’s Time to Reposition Your Property

Many landlords hold properties that are underperforming due to outdated layouts, inefficient space, or misaligned tenant mix. Repositioning doesn’t always require major works—it starts with identifying the potential and crafting a new value proposition.

Key indicators that repositioning may be needed include:

• Frequent tenant churn or prolonged vacancies

• Buildings that no longer meet ESG or compliance standards

• Poor presentation or branding, especially for street-facing assets

• Layouts or tenancies that limit flexibility or upgrade potential

Once you’ve identified the need, small to mid-level upgrades can unlock rental growth and improve long-term tenant retention.

Smart Leasing & Repositioning Strategies – Improve presentation and functionality

Modern tenants are drawn to clean, well-maintained spaces that reflect professionalism. Even basic upgrades can deliver a better leasing outcome.

Focus your upgrades on:

• Painting, signage, landscaping, and basic cosmetic works

• End-of-trip facilities (for office) or sealed yards (for industrial)

• Updated entryways or reception areas for first impressions

• Minor modifications to layouts to suit likely users

Target the right tenant audience

Your marketing and leasing approach should match the type of tenants most likely to lease your space—not a generalised campaign. Speak directly to their needs.

Effective tenant targeting involves:

• Identifying industry sectors active in your area

• Tailoring IMs or leasing packs to those sectors

• Promoting specific property benefits (access, power, parking, clearance)

• Working with agents who have established tenant networks

Consider flexible configurations

Offering flexibility in size, use, and layout can open your property to a wider pool of tenants. This is especially effective in industrial and office markets.

Strategies to build flexibility include:

• Offering partial leases or subdividing large units

• Installing modular walls or mezzanines

• Securing approvals for multiple potential use types

• Structuring leases with options to expand, renew, or purchase later

Invest in digital marketing assets

Properties that are actively promoted online with strong visuals consistently lease faster. In a competitive environment, digital content can give your asset an edge.

Build your leasing campaign with:

• Aerial and ground-level photography showing context and access

• 3D renders or future-use illustrations (especially for vacant sites)

• Interactive maps and floorplans for clarity

• Paid ad campaigns across realcommercial, social, and Google

Getting the Lease Structure Right

Even with the right tenant, the lease structure itself plays a major role in long-term performance. A poorly negotiated lease can limit your future sale potential or introduce unforeseen costs.

Ensure your lease terms support long-term value by:

• Including annual CPI or fixed rent escalations

• Recovering outgoings wherever possible (net lease)

• Clarifying responsibilities for maintenance and compliance

• Aligning lease lengths with tenant risk profile and investment horizon

A good agent or property lawyer can assist in balancing tenant expectations with your long-term goals as a landlord.

Hold, Lease, or Develop? Know Your Options

Sometimes leasing isn’t the only path. Depending on the location and planning controls, your site may be suited for value-add development or subdivision.

Here’s how to assess the best option:

Hold and lease

• You have a strong tenant or new interest in the pipeline

• The area is experiencing infrastructure upgrades

• Asset yields are outperforming sale expectations

Reposition and sell

• You’ve made upgrades and lease improvements

• Investor appetite is strong in your asset class

• You want to free up capital for other opportunities

Develop or subdivide

• Your land is oversized or underutilised

• Council supports higher density or subdivision

• Tenant pre-commitments are possible for new builds

Always consider your tax, capital gains, and development timelines before making a call.

Final Thoughts

Perth’s commercial leasing market in 2025 is full of potential—but only for landlords who know how to position their property for what tenants want today. With the right upgrades, marketing, and leasing structure, you can increase returns, boost asset value, and set up for future flexibility.

Need help marketing, leasing, or repositioning your commercial property in Perth?
We handle everything from 3D renders and IMs to digital leasing campaigns. Contact our team to discuss your strategy.