Commercial real estate Perth is experiencing unprecedented growth, making it the perfect time to invest or expand your business in Western Australia’s capital city.
The numbers speak volumes – retail properties jumped 23.8% in value by March 2025, while industrial spaces saw a solid 15.1% increase throughout 2024. This commercial real estate Perth boom isn’t just hype.
Whether you’re a small business owner hunting for the perfect shopfront, an investor eyeing your next deal, or a developer scoping opportunities, this guide delivers actionable insights. We’ll break down what’s actually happening in commercial real estate Perth right now.
No fluff, no jargon – just the market intelligence you need to make profitable decisions in 2025.
Commercial Real Estate Perth Sectors Are Performing Differently
Understanding each sector’s performance helps you spot the best opportunities in commercial real estate Perth. The market covers three main areas: retail, industrial, and office spaces.
Retail properties are the clear winners right now. The median sale price hit $5,238 per square meter in March 2025. That’s a massive jump from last year’s figures.
Eastern States investors are flooding into Perth’s retail market, attracted by better yields than they can find back home. Population growth is backing up this demand too.
Industrial properties aren’t far behind in the commercial real estate Perth landscape. The median sale price reached $2,605 per square meter in 2024. Mid-sized warehouses between 1,000 and 3,500 square meters are particularly hot right now.
Office spaces are taking a more measured approach. They saw a 7.6% price increase in 2024. The hybrid work trend is reshaping what tenants want from their office spaces.
Smart money is watching all three sectors, but with different strategies. Retail and industrial offer the strongest growth potential. Office spaces require more careful selection based on location and amenities.
Industrial Properties Lead Commercial Real Estate Perth Investment
Industrial commercial real estate Perth is where the action is for serious investors. The sector’s 15.1% price growth in 2024 wasn’t just luck – it reflects genuine market fundamentals.
Mid-sized warehouses are in hot demand, especially those between 1,000 and 3,500 square meters. Supply is tight, which pushes both rents and property values higher.
Perth’s north-west subregion commands the highest industrial prices in commercial real estate Perth. This area offers excellent transport links and proximity to major business districts. It’s where smart investors are focusing their attention.
But here’s a warning: oversupply risk exists for large warehouses over 5,000 square meters. These properties face increased competition and rising incentives from landlords trying to attract tenants.
The industrial sector benefits from Perth’s growing population and economic activity. More people means more goods need storage and distribution. This creates steady demand for quality industrial spaces.
Realmark Commercial notes that tight supply in mid-sized spaces will likely push rents higher throughout 2025. This creates opportunities for both investors and developers.
Location remains crucial in industrial commercial real estate Perth. Properties near major transport routes, ports, and business centers command premium prices. Access to skilled labor pools also affects long-term rental demand.
Retail Commercial Real Estate Perth Properties Are Breaking Records
Retail commercial real estate Perth is experiencing unprecedented growth. The 23.8% annual increase in median sale prices shows just how strong this sector has become.
Investor confidence has returned to retail properties after years of uncertainty. Online shopping concerns have given way to recognition that physical retail still matters.
Perth’s Inner subregion leads retail performance with prices reaching $7,500 per square meter. These premium locations offer foot traffic and visibility that online competitors can’t match.
Population growth in Western Australia directly benefits retail commercial real estate Perth. More residents means more local spending, which translates to higher rents for well-located retail spaces.
Eastern States investors are particularly active in Perth’s retail market. They’re attracted by yields that exceed what they can achieve in Sydney or Melbourne markets.
Shopping centers and strip retail both show strength. However, properties with good parking and easy access perform better than those in congested areas.
The key to retail success remains location, location, location. Properties near public transport, residential areas, and complementary businesses command the highest rents and sale prices.
Office Space Demand in Commercial Real Estate Perth Is Evolving
Office commercial real estate Perth faces unique challenges and opportunities. The 7.6% price growth in 2024 masks significant changes in tenant preferences and location demand.
Hybrid work models are reshaping office requirements. Companies need flexible spaces that support both in-person collaboration and remote work integration.
Premium CBD offices with quality amenities are outperforming older buildings. Tenants pay more for spaces that attract and retain staff in today’s competitive employment market.
Suburban office markets like Subiaco and Leederville are gaining popularity in commercial real estate Perth. These areas offer lifestyle benefits and easier parking compared to the central business district.
Suburban office vacancy rates hit record lows at 9.4%. This tight supply gives landlords more negotiating power and supports rental growth in these areas.
The office sector rewards landlords who invest in upgrades and modern amenities. Properties with poor facilities struggle to attract quality tenants, regardless of their location.
Flexible lease terms and collaborative spaces are becoming standard tenant requirements. Smart landlords are adapting their properties to meet these evolving needs.
Key Investment Zones in Commercial Real Estate Perth
Commercial real estate Perth isn’t uniform – certain areas offer better opportunities than others. Understanding these zones helps you make smarter investment decisions.
The north-west subregion dominates industrial investment. It combines excellent transport links with proximity to Perth’s major business centers. Industrial properties here command premium prices for good reason.
Perth’s Inner subregion leads retail investment opportunities. With median prices at $7,500 per square meter, it’s expensive but offers the highest foot traffic and visibility.
Subiaco and Leederville represent the future of office investment in commercial real estate Perth. These suburban locations offer lifestyle benefits that attract both tenants and employees in the hybrid work era.
Market experts identify growth corridors where infrastructure investment supports property value increases. These areas often offer the best long-term returns.
Transport-oriented development zones benefit from government infrastructure spending. Properties near new rail lines, bus routes, and major road upgrades typically see stronger capital growth.
Mixed-use developments are gaining traction in certain suburbs. These projects combine retail, office, and residential components, creating diverse income streams for investors.
Market Trends Shaping Commercial Real Estate Perth
Several major trends are reshaping commercial real estate Perth. Understanding these forces helps you position your investments and business decisions for long-term success.
Population growth remains Perth’s strongest market driver. Western Australia’s expanding population creates demand across all commercial property sectors, from retail to industrial.
Eastern States capital is flowing into Perth as investors seek better yields. This interstate interest supports property values and creates competition for local buyers.
Hybrid work arrangements are permanent fixtures in the commercial real estate Perth office market. Companies are rethinking their space needs, often requiring less total area but higher-quality facilities.
E-commerce growth affects retail and industrial differently. While some retail spaces face challenges, demand for distribution centers and logistics facilities continues growing.
Sustainability requirements are becoming standard in commercial properties. Energy-efficient buildings attract better tenants and command higher rents than outdated facilities.
Technology integration is no longer optional. Properties with modern connectivity and smart building features outperform those stuck in the past.
Leasing Strategies That Actually Work
Successful leasing in Perth’s commercial market requires understanding both landlord and tenant perspectives. The current market offers opportunities for those who approach leasing strategically.
Tenant preferences have shifted toward premium spaces with modern amenities. Basic facilities no longer attract quality tenants willing to pay market rents.
Flexible lease terms are increasingly important. Tenants want options to expand, contract, or modify their space as business needs change.
Landlords who invest in property upgrades see faster leasing and higher rents. Modern lighting, air conditioning, and technology infrastructure make properties more attractive.
Location accessibility affects leasing success significantly. Properties near public transport, parking, and complementary businesses lease faster and at higher rates.
Professional property management makes a difference in tenant retention. Responsive maintenance and clear communication help maintain long-term tenancy relationships.
Market-rate pricing based on recent comparable sales ensures competitive positioning. Overpricing leads to extended vacancy periods that hurt overall returns.
Investment Opportunities You Shouldn’t Miss
Perth’s commercial real estate market offers several compelling investment opportunities right now. Timing and location selection will determine your success in this competitive environment.
Mid-sized industrial properties between 1,000 and 3,500 square meters offer the best risk-adjusted returns. Supply constraints support both rental growth and capital appreciation.
Retail properties in high-traffic locations benefit from population growth and renewed investor confidence. Focus on areas with strong demographic trends and limited new supply.
Suburban office buildings in Subiaco and Leederville offer better yields than CBD properties. These locations align with changing work patterns and lifestyle preferences.
Value-add opportunities exist in older commercial buildings that need upgrades. Strategic renovations can significantly improve rental income and property values.
Mixed-use developments in growth corridors combine multiple income streams. These properties often benefit from government infrastructure investment and zoning changes.
Properties near planned transport infrastructure offer long-term capital growth potential. Research upcoming projects and position yourself before major announcements drive prices higher.
Navigating Commercial Real Estate Perth Successfully
Success in commercial real estate Perth requires practical knowledge and strategic thinking. Whether you’re investing or leasing, these insights will help you make better decisions.
Professional market research provides the foundation for good decision-making. Use REIWA’s commercial portal and other resources to understand current market conditions.
Local expertise matters more than national trends in commercial real estate Perth. The market has unique characteristics that require understanding of local conditions, regulations, and business patterns.
Due diligence goes beyond basic property inspections. Investigate tenant quality, lease terms, market comparables, and future development plans that might affect your property.
Financing options vary significantly for commercial properties. Establish relationships with lenders who understand Perth’s market and can provide competitive terms.
Legal and tax considerations affect investment returns significantly. Professional advice helps you structure deals properly and avoid costly mistakes.
Network with local professionals including agents, lawyers, accountants, and property managers. These relationships provide market insights and deal opportunities not available through public channels.
What’s Next for Commercial Real Estate Perth
The outlook for commercial real estate Perth remains positive through 2025 and beyond. Several factors support continued growth across multiple property sectors.
Commercial property valuations are stabilizing after recent volatility. This creates a more predictable environment for both investors and tenants.
Transaction volumes are expected to recover as market confidence returns. More deals mean better price discovery and increased liquidity for property owners.
Government infrastructure spending supports long-term property values in commercial real estate Perth. Transport projects, port expansions, and business district improvements benefit nearby commercial properties.
Population growth projections remain strong for Western Australia. This demographic trend supports demand across all commercial property sectors.
Interest rate stabilization helps property financing become more predictable. This reduces uncertainty for both investors and businesses considering lease commitments.
The key to success remains focusing on quality properties in prime locations. These assets will outperform regardless of broader market conditions.
Commercial real estate Perth offers genuine opportunities for informed investors and strategic business decisions. The fundamentals are strong, the trends are clear, and the timing is right for those ready to act.
