A shortage of new supply of commercial and industrial property in Perth is driving a resurgence of strong leasing deals in the sector.
While many companies and self-managed super fund buyers are keen to purchase business space, buying opportunities are limited.
“Prices of industrial and commercial properties across Perth, especially in key growth precincts, are rising substantially, edging out smaller business owners and investors,” says Jessica Di Camillo, Portfolio Growth Manager of Effective Property Solutions’ Assets/Property Management arm.
“To top it off, many landlords are simply not interested in selling, understanding the limitations they face in securing a new space.”
Economic uncertainty another driver
REIWA’s December Commercial Property Update showed the industrial sector was the top performer for 2025, with its median sale price per sqm rising 15.5 per cent to $2,935. Across Perth, 40.6 per cent of industrial sales were priced between $1 million-$5 million.
“In this sector, getting new product to market is not without its challenges at present, leading to a continued shortage of supply,” Ms Di Camillo explains.
“The upshot of that, combined with higher levels of economic uncertainty and volatility, is that we’re seeing strong leasing demand, with tenants revisiting and snapping up existing commercial and industrial properties they may have previously passed over.
“This is noticeable at all ends of the spectrum – from smaller spaces to very large buildings of 10,000m2 and more.”
D&C demand still exists at the larger end
EPS Founder and Managing Director Erwin Edlinger says despite the overall trend towards leasing, larger businesses were still displaying an appetite for design and construct projects.
“More established entities that can purchase a significant slice of land outside the CBD are pressing ahead with building new premises, riding out the increased construction costs for long term security and gain,” he says.
“EPS continues to partner with those companies in an acquisition advisory role, streamlining the process for them and allowing them to focus on their core business while we handle the details.”
