Perth Commercial & Industrial Market Update – Q3 2026
Perth’s commercial and industrial property market continues to demonstrate positive underlying fundamentals, supported by population growth, economic activity and sustained demand across the industrial, office and retail sectors.
Industrial property remains the strongest and most tightly held sector, while improving office demand and resilient retail spending are creating opportunities across Perth’s broader commercial market.
Industrial Demand Remains Strong
Approximately 187,000 sqm of industrial space was taken up during the June 2026 quarter, bringing rolling 12-month leasing activity to approximately 409,000 sqm—well above Perth’s long-term average.
Demand continues to be led by the transport, warehousing, logistics, manufacturing and e-commerce sectors. Modern facilities within Perth’s established eastern and southern industrial precincts remain particularly sought after.
Perth’s industrial vacancy rate tightened to approximately 1.0% during the first half of 2026, compared with a national industrial and logistics vacancy rate of 3.2%. This limited availability continues to create competition for suitable premises and encourage strong lease-renewal activity.
Occupiers considering expansion or relocation may need to begin their property search earlier, particularly when seeking modern facilities in tightly held industrial precincts.
Rents and Industrial Land Values Continue to Grow
Super-prime industrial rents were approximately 6.5% higher year-on-year at the end of the June quarter, with rental growth also recorded across Perth’s northern, eastern and southern precincts.
A shortage of serviced industrial land, combined with continued owner-occupier demand, is supporting land values across metropolitan Perth. These conditions are particularly evident in established industrial locations including Welshpool, Kewdale, Canning Vale and Perth Airport, where opportunities to acquire well-located land remain limited.
Although Perth has an active development pipeline, much of the forthcoming supply has already been secured by occupiers. Approximately 74% of the forward industrial supply pipeline was pre-committed at the end of the June quarter, limiting the amount of speculative accommodation likely to become available.
Construction costs, financing conditions and the availability of serviced land will also continue to influence the timing and feasibility of new industrial development.
Office Market Records Stronger Demand
Conditions within the Perth CBD office market improved during the first half of 2026.
CBD vacancy declined from 16.9% to 15.4%, with prime vacancy falling to 13.7%. Approximately 27,500 sqm of positive net absorption was recorded during the six-month period—the strongest half-year result since the end of 2021.
Tenant enquiry volumes during the June quarter were approximately 17% higher than a year earlier, while the number of tenant enquiries increased by 26%. Leasing volumes also more than doubled compared with the corresponding quarter in 2025.
Demand remains concentrated within well-located, high-quality buildings offering modern accommodation and strong amenity. This continued preference for quality means older or less efficiently configured buildings may require improvements or more flexible leasing strategies to compete effectively.
Prime CBD net face rents increased by approximately 4.3% over the year, although incentives remain elevated and continue to play an important role in tenant negotiations.
Retail Supported by Spending and Population Growth
Perth’s retail property market remains resilient, supported by population growth and strong household spending. Western Australian household expenditure was approximately 7.5% higher year-on-year in May 2026.
Food and beverage operators remain active within the Perth CBD, while service-based businesses continue to seek accommodation in neighbourhood and sub-regional centres.
Rental growth was recorded across all major retail subsectors during the June quarter, although the increases were modest. Large-format retail continues to perform well, supported by limited supply and demand from established operators.
Retail investors remain selective, with location, tenant strength, lease structure and the long-term relevance of individual properties continuing to influence purchasing decisions.
Perth Market Outlook
Perth’s industrial market is expected to remain tightly held over the near term, with limited vacancy supporting rents and competition for well-located properties.
The office market is showing signs of recovery, although performance will continue to vary according to building quality, location and amenity. Retail conditions are also expected to remain positive, particularly for well-positioned neighbourhood, service-based and large-format properties.
For property owners, current conditions provide an opportunity to review rental positions, leasing strategies, property presentation and future capital works. Prospective purchasers and occupiers should also consider acting early when suitable opportunities become available.
To discuss how current market conditions may affect your commercial or industrial property requirements, contact the MLV Property team.
Recent Perth Transactions
Strong results achieved across Perth’s commercial and industrial property market.
61 Dowd Street, Welshpool
Leased
MLV Property successfully leased this substantial 4,725 sqm industrial facility following a highly competitive campaign that generated more than 80 enquiries.
A five-year lease with a further five-year option was secured, demonstrating the continued strength of demand for quality industrial accommodation within Welshpool.
17 Mosey Street, Landsdale
Sold Off-Market for $4.9 Million
MLV Property successfully negotiated the off-market sale of 17 Mosey Street, Landsdale for $4.9 million, with the transaction settling in August 2026.
The property was sold as a going concern, demonstrating continued investor demand for quality industrial assets within Perth’s tightly held northern industrial market.
