Commercial Real Estate Perth – 2024 Trends Prices and Growth

Perth’s commercial property sector defied national headwinds throughout 2024, posting solid growth across industrial, retail and office markets as Western Australia’s economic expansion continued. Median sales prices climbed in every sector, with industrial assets recording the most dramatic gains amid severe supply constraints.

The resilience of Perth’s market contrasted sharply with eastern capitals, positioning the city as a unique investment destination. Strong activity carried into early 2025, supporting forecasts for continued price appreciation despite broader economic uncertainties.

What is the current commercial real estate market like in Perth?

1. Industrial dominance: Median prices hit $2,605 per square metre by December 2024, driven by supply constraints.
2. Retail resurgence: Transaction volumes jumped 27.1 per cent year-on-year, suggesting investor rotation from industrial assets.
3. Office momentum: Sales increased 22 per cent to 355 transactions, with the Inner sub-region capturing 45.1 per cent of activity.
4. Unique CBD performance: Office vacancy decreased to 14.9 per cent, down from 15.9 per cent, bucking national trends.
5. Supply limitations: An 11 per cent decline in industrial sales volume reflected limited stock, not reduced demand.
6. Construction stabilization: Costs began stabilising after previous volatility, attracting east coast developer interest.
7. Investment caution: Commercial investment activity remained subdued entering 2026 despite price growth.

What are the best areas for commercial property in Perth?

Industrial Concentrations

The North West sub-region commands the highest industrial prices at $2,857 per square metre. Transaction activity concentrated in the South East with 270 sales, followed by the North West with 257 and South West with 253.

Retail Hotspots

Perth Inner leads retail pricing at $7,811 per square metre, with the South West following at $5,424. Major centres including Karrinyup and Joondalup demonstrated particular resilience, while older outer-lying regions faced challenges.

Office Sub-markets

The Inner sub-region dominated office activity, capturing 45.1 per cent of all transactions with 203 sales. Pricing here reached $4,722 per square metre, while the South West averaged $4,565.

How much does commercial office space cost to rent in Perth?

Specific rental rates per square metre were not disclosed in available 2024 market reports. Sales data indicates median prices reached $4,370 per square metre by December 2024, with the Inner sub-region commanding $4,722 per square metre.

Current Leasing Conditions

For the first quarter of 2026, Cushman & Wakefield reported modest annual rent growth across most office grades within the Perth CBD. Net absorption improved steadily, though specific dollar-per-square-metre rental figures require current market consultation.

Is now a good time to invest in commercial property in Perth?

Investment conditions vary significantly by sector. Industrial assets showed the strongest price appreciation at 15.1 per cent, though entry prices have risen correspondingly. Thirty-five point eight per cent of industrial transactions fell between $1 million and $5 million, indicating active mid-market participation.

Entry Point Analysis

Retail offers lower entry points, with 28.6 per cent of sales priced between $250,000 and $500,000. Transaction volume surged 27.1 per cent, suggesting potential investor rotation from industrial as yields compress.

Sector Considerations

The office sector presents mixed signals. While CBD vacancy tightened uniquely among Australian capitals, commercial investment activity remained subdued into early 2026.

What types of commercial properties are available in Perth?

Perth’s commercial inventory spans three primary categories, each exhibiting distinct 2024 performance characteristics.

Industrial Assets

The sector includes warehouses, logistics facilities and manufacturing premises. These properties commanded median prices of $2,605 per square metre, with the North West sub-region achieving $2,857. Supply constraints dominated market dynamics.

Retail Premises

High street shops, suburban centres and major shopping complexes comprise this category. By mid-2024, some shopping centres such as Karrinyup and Joondalup thrived due to strong reputation and tenant demand, while older outer-lying regions faced challenges.

Office Spaces

CBD towers, suburban business parks and fringe locations constitute the office market. The Inner sub-region concentrated 45.1 per cent of sales activity, while suburban office growth accelerated due to work-from-home trends and village-style developments.

How has Perth’s commercial market evolved recently?

1. 2024 Annual Growth: All sectors recorded median price increases—industrial and retail both at 15.1 per cent, office at 7.4 per cent.
2. January 2024 CBD Milestone: Perth became the only Australian capital to record decreasing office vacancy, dropping to 14.9 per cent from 15.9 per cent six months prior, as confirmed by the Property Council of Australia.
3. Mid-2024 Retail Divergence: While older outer-lying retail regions faced challenges, premium centres demonstrated resilience.
4. December 2024 Price Peaks: Industrial median reached $2,605/sqm, retail $4,928/sqm, and office $4,370/sqm.
5. Early 2025 Momentum: REIWA reported strong market activity and increased enquiry levels, supporting continued growth forecasts.
6. Q1 2026 Industrial Tightness: Headline vacancy fell to 2.7 per cent, dropping to 1.9 per cent excluding sublease availability.

What do we know for certain about Perth’s commercial market?

What factors are driving Perth’s commercial property performance?

Western Australia’s economic expansion underpins commercial real estate demand. High demand and low supply of commercial real estate, particularly in prime locations, continues to pressure prices upward.

Population growth and significant infrastructure projects drive business expansion and new enterprise development throughout the metropolitan area. Increased consumer spending and tourism particularly boost the retail sector, while suburban office growth is fueled by the work-from-home trend and development of suburban villages.

Supply constraints particularly affect industrial assets, where limited land availability creates competitive purchasing conditions. High construction costs, though stabilising, further restrict new supply delivery.

What do industry experts say about Perth’s market?

Price growth was expected to continue into 2025, supported by strong market activity and increased enquiry levels at the start of 2025.

— REIWA

Perth was the only Australian capital city to record a decrease in CBD office vacancy.

— Property Council of Australia, WA Office Market Report 2024

What is the bottom line for Perth commercial real estate?

Perth commercial real estate demonstrated exceptional resilience through 2024, with industrial and retail assets leading price growth while office vacancy tightened uniquely among Australian capitals. For detailed sector analysis, consult the Perth Commercial Real Estate 2024 Market Report.

Frequently Asked Questions