Perth Commercial Property Forecast

Perth’s commercial property market is entering 2025 with strong momentum, driven by industrial demand, infrastructure development, and population growth. With Western Australia’s economy remaining resilient and diversified beyond mining, Perth is becoming a magnet for logistics, advanced manufacturing, and commercial investment.

This article explores the key trends shaping Perth’s commercial property outlook in 2025.

Industrial Sector Still Leading

The industrial sector continues to dominate the commercial property landscape in Perth. With record-low vacancy rates and surging demand for warehousing and logistics hubs, the sector remains the top performer.

Key drivers of demand:

• E-commerce expansion in WA

• Growth in defence and resource logistics

• Regional trade through Fremantle Port and Kewdale Intermodal

• Infrastructure-driven site access improvements

Perth’s eastern and southern industrial corridors are seeing the highest concentration of activity.

Top precincts in 2025:

• Kewdale / Welshpool: Major logistics and rail access

• Forrestdale / Jandakot: Distribution and light industry

• Latitude 32 / Hope Valley: Strategic for road train access

• Malaga / Wangara: North-of-river business growth zone

Land prices are still relatively affordable compared to other capitals, attracting developers and occupiers alike.

Office Market: Recovery & Flight to Quality

Perth’s office market is gradually recovering, with vacancy levels beginning to tighten in core CBD locations. Tenants are upgrading to newer, higher-quality buildings with sustainability credentials.

2025 Trends:

• Hybrid work is stabilising space requirements.

• Premium buildings with lifestyle amenities are leasing faster.

• Government and mining-related tenancies dominate the demand profile.

Decentralised office precincts, like Subiaco and Herdsman, are also seeing renewed interest due to ease of access and lifestyle proximity.

Retail and Mixed-Use: Local Centres Gaining Ground

While large-format retail remains under pressure, local and neighbourhood centres in growth corridors are performing well. Population growth in outer metro areas like Ellenbrook, Alkimos, and Byford is creating demand for:

• Medical centres

• Childcare and education

• Quick service restaurants and essential retail

Mixed-use developments that combine light commercial, retail, and residential are becoming more common in planning approvals.

Major Infrastructure Projects Shaping 2025

Strategic projects continue to reshape Perth’s commercial footprint:

• METRONET expansion: Improving public transport to commercial and industrial zones.

• Tonkin Highway upgrades: Enhancing freight access across key east-west corridors.

• Fremantle Port upgrades: Increasing trade and container movement.

• Roe Highway Logistics Park: Creating a centralised logistics hub for Greater Perth.

These projects are unlocking new areas for commercial development and boosting site accessibility.

Investment Trends in Perth Commercial Real Estate

Perth is drawing more attention from interstate and offshore investors looking for:

• Higher yields than Sydney or Melbourne

• Less competition in acquisition

• Growth upside in logistics, land, and retail sectors

In 2025, most active investor groups include:

• Private syndicates

• National industrial REITs

• Local owner-occupiers

Green credentials and long-term tenancy structures remain high priorities.

Key Challenges Ahead

• Labour shortages: Affecting both construction and tenant fitouts.

• Planning complexity: Delays in approvals and zoning shifts.

• Cost escalation: Particularly on regional or hardstand developments.

However, with continued population growth and state-supported infrastructure rollout, most analysts see these as temporary hurdles.

Final Thoughts

Perth’s commercial property market in 2025 presents compelling opportunities across industrial, office, and mixed-use sectors. As infrastructure opens up new growth corridors and businesses seek cost-effective expansion locations, WA’s capital city is well positioned for continued growth.

For investors, developers, and tenants alike, understanding where the infrastructure meets demand will be the key to unlocking value in Perth’s next growth cycle.