Perth Commercial Property Market Update – December 2025
Insights, Trends, and Opportunities in Perth’s Commercial Real Estate Market
Perth Market Snapshot – December Qtr 2025
Perth continues to stand out nationally as one of Australia’s most resilient commercial property markets. Industrial property remains the headline act – supply-constrained, and heavily sought after. Retail has consolidated its position as a preferred alternative for investors, while the office market is entering a new phase, with Perth’s unprecedented premium grade office supply gap set to underpin rental growth from mid-2026 onwards. For commercial property owners, the fundamentals are compelling.
Industrial Market
$2,935
15.5%
1,009
Industrial property has been Perth’s standout commercial performer for several years running, and the year to December 2025 was no exception. The median sale price per sqm climbed 15.5 per cent to $2,935, confirming the sector’s position as the top performer across all Perth commercial markets. Yet for all the price strength, the headline story is one of supply, not demand. According to REIWA President Suzanne Brown, members continue to report major challenges getting new industrial property to market – delays in planning, titling, and infrastructure connections are throttling the development pipeline.
JLL’s reports Perth’s metropolitan industrial vacancy at approximately 2.65 per cent, with select northern precincts tracking below one per cent. AUKUS-related activity is also creating a notable uplift in the South West sub-region, which recorded the most transactions of any precinct in the year to December 2025. The Inner sub-region continued to command the highest median at $4,309 per sqm, reflecting the premium placed on proximity to the CBD and port.
Demand from owner-occupiers remains the dominant force, with businesses in logistics, construction, trade services, and e-commerce competing fiercely for available premises. Investors are equally active, particularly in the $1 million to $5 million bracket, which accounted for 40.6 per cent of all sales. A decline in total transactions – down 12.5 per cent on the prior year – is a direct consequence of constrained supply rather than any softening in appetite.
$4,309
40.6%
2.65%
Office Market
17%
9.8%
479
Perth’s office market is sending mixed signals at the headline level, but look beneath the CBD vacancy figure and the picture becomes considerably more positive. The Property Council’s July 2025 Office Market Report confirmed vacancy at 17 per cent – the second highest of all capitals – driven largely by the delivery of new premium stock and the backfill it created. Critically, the Property Council of Australia confirmed that Perth has now entered an unprecedented drought of new office supply. With no new CBD office developments expected until at least 2030, that vacancy number has nowhere to go but down.
CBRE’s August 2025 commentary reinforced this message strongly. Perth has entered its longest supply gap in 25 years, and forecasts CBD rents will rise by at least 25 per cent over the next five years as market rents catch up with economic rents. A step-change is expected in rents from mid-2026 onwards – not a gradual drift, but a meaningful repricing. For owners of quality CBD or near-city office stock, the medium-term outlook is genuinely compelling. Enquiry levels in the first half of 2025 were up 24 per cent on the prior period, and of tenants who relocated, 52 per cent chose to expand their footprint.
Suburban and strata office markets are already performing strongly. REIWA data shows the median office sale price per sqm rose 9.8 per cent in the year to December 2025, reaching $4,844. The $250,000–$500,000 bracket accounted for 33.2 per cent of all sales – firmly in owner-occupier territory. REIWA members report that suburban suites of 150–250 sqm are in high demand, particularly from professional services firms seeking ownership rather than tenancy. Parking, fitout quality, and proximity to amenities remain the decisive variables.
33.2%
25%+
Retail Market
$5,237
+4.0%
193
Perth’s retail market has cemented its status as a genuine alternative to industrial for investors seeking income-producing commercial property. As industrial yields have compressed and available stock has dwindled, a broadening pool of private investors, SMSFs, and Eastern States buyers have directed their attention to well-leased neighbourhood and strip retail. The median sale price per sqm for retail reached $5,237 in the year to December 2025 – with the Inner sub-region, home to Perth’s most sought-after lifestyle precincts, sitting at $6,200 per sqm.
The structural story behind retail remains persuasive. Western Australia is the nation’s fastest-growing state, adding tens of thousands of new residents each year. More residents means more customers, more foot traffic, and more demand for everyday service-based retail – food and beverage, allied health, pharmacies, convenience operators. These tenants are highly resistant to online disruption and benefit directly from population growth. REIWA members report that properties leased to national brands on long-term agreements continue to command strong interest and competitive pricing.
Investor success in retail continues to depend heavily on tenant selection, lease structure, and location specificity. Multi-tenancy properties – corner sites, dual-frontage assets, and centres with diversified income – are attracting the strongest competition. The 28.1 per cent of retail sales priced between $500,000 and $750,000 speaks to the depth of the mid-market buyer pool, while the 26.6 per cent in the $250,000–$500,000 bracket remains accessible to the mum-and-dad and SMSF investor. Looking ahead, continued population growth and any further easing in interest rates provide a supportive backdrop for retail property values.
26.6%
28.1%
Speciality Sectors
Medical/Consulting/Allied Health
Medical and allied health premises remain a resilient and sought-after segment of the commercial market. Demand is steady across the Perth metro area, driven by population growth, an ageing demographic, and the continued expansion of community health services. Owner-occupiers – including GP practices, specialist clinics, physiotherapy, and allied health operators – are active buyers, and investor appetite for well-leased medical tenancies remains strong.
Properties with strong parking ratios (four or more bays per 100 sqm), good signage exposure, and quality fitout continue to command premium values. Lease terms tend to be long, as the cost of fitout deters tenants from moving – a genuine advantage for investors seeking reliable, long-WALE income. Yields for well-leased medical properties generally sit in the 5–6 per cent range.
Fuel & Fast-Food/Drive-Through
These assets remain in consistently high demand, especially in growth suburbs and along arterial roads with strong traffic exposure. Entry pricing is typically $2 million or above for metropolitan Perth sites, reflecting the quality of tenant covenant and the long-term, passive income these assets deliver.
Investors and owners favour long-term leases of 15–20 years with CPI or fixed rental increases, and strong national or international lease covenants. Key value drivers are visibility, traffic volume, turning movements, and existing planning approvals – securing approvals for new fuel or drive-through sites involves significant time and cost, so assets with existing use rights are valued accordingly. Competition from Eastern States buyers is strong, and off-market transactions are common.
Important Disclaimer
The information contained in this market update has been compiled from third-party sources including REIWA, Property Council of Australia, and Herron Todd White, and other sources. While we endeavour to ensure the accuracy of this information, Perth Commercial Property makes no representations or warranties regarding its completeness or accuracy. This information is provided for general guidance only and should not be relied upon as the basis for any investment or business decision. We recommend that you seek independent professional advice before making any property-related decisions. Perth Commercial Property accepts no liability for any loss or damage arising from reliance on this information.
Recent Sales
Case Study: Bayswater Industrial Sale – Under Offer
Our team recently marketed a vacant possession industrial property in Bayswater for sale, generating exceptionally strong interest from a predominantly local buyer pool.
1,411m²
680m²
Vacant Possession
General Industry
Under Offer
Outcome: Located within a tightly held industrial precinct, this property attracted extremely strong interest – particularly from owner-occupier buyers looking to secure their own premises. Older style improvements did nothing to dampen enthusiasm, with the land size, zoning, and location proving the primary drawcards. This result reinforces a consistent theme in Perth’s industrial market: well-located vacant possession stock in established precincts commands a highly competitive local buyer pool, regardless of building age.
Case Study: Entry-Level Sale 3/98 Lake Street, Northbridge
Our team recently completed the sale of a vacant possession property in the heart of Northbridge, which attracted significant interest from both owner-occupiers and investors.
110m²
110m²
0
Ground Floor
Outcome: Strong local enquiry led to a sale at $620,000, reflecting the depth of demand for entry-level commercial property in Perth’s inner city. With no car bays and a compact 110m² footprint, this result demonstrates that in the right location, access and exposure can outweigh the absence of other attributes, in this case – parking. For buyers and investors in this segment, Northbridge’s foot traffic, proximity to the CBD, and street-level visibility are the decisive value drivers.
Property Management Case Study
Case Study: : Commercial Property Management – Generational Asset, Near Perth CBD
Perth Commercial Property was recently appointed to manage a significant generational asset held by a private family, located close to the Perth CBD.
Prior to our appointment, the owner had already negotiated a lease with a recreational tenant, subject to a number of conditions being satisfied before commencement – including Council approval and demolition of the existing buildings on site.
On appointment, we conducted a thorough review of the lease and identified that the tenant’s security bond remained outstanding. We immediately introduced ourselves to the tenant as the arms-length managing party acting on behalf of the Landlord, established clear lines of communication, and followed up directly regarding the outstanding bond.
By stepping in early and reviewing the lease with fresh eyes, we were able to identify and address the outstanding Bond which otherwise may have been missed. It’s a good example of how professional property management protects owners not just in the day-to-day, but at the critical moments when the foundations of a tenancy are being set.
How We Can Help
Sale Appraisals
Our commercial property appraisals provide an accurate assessment of your property’s market position based on comprehensive market analysis, recent comparable sales, and our deep understanding of Perth’s commercial landscape.
We consider all factors that impact your property’s value, including:
- Location and accessibility
- Current lease arrangements
- Building condition and improvements
- Market trends and future growth potential
- Zoning and development opportunities
Commercial Property Management
Our comprehensive property management services are designed to maximise your investment returns while minimising your involvement in day-to-day operations.
Our property management services include:
- Strategic advice on commercial portfolio performance
- Tenant sourcing and screening
- Lease negotiation and documentation
- Rent collection and financial reporting
- Property maintenance and inspections
- Compliance with regulatory requirements
With decades of combined experience in Perth’s commercial real estate market, our team provides expert guidance and personalised service to help you achieve your property goals.
Our Expert Team
We blend sharp commercial expertise and experience with a progressive mindset, giving owners and landlords the confidence that their property is in the best hands. Meet the team that makes it happen
Marc Valentine – Director
Anna Valentine – Director & Licensee
Winner Commercial Salesperson of the Year 2025 – REIWA Awards for Excellence
