Western Australia's commercial property market has entered the new financial year with positive underlying sentiment, despite shifting interest rate expectations, rising costs and broader economic uncertainty.
Realmark Commercial's Q1 FY26/27 Quarterly Insights report highlights continued demand across industrial, retail and development markets, with limited quality stock and changing investment preferences influencing activity.
Wayne Chorley, Executive Director of Commercial Agency, notes that recent residential property tax changes have encouraged greater interest in commercial investments, particularly industrial assets. Competition for limited investment stock has also contributed to yield compression.
That confidence has been reflected in the business's performance, with September marking Realmark Commercial's strongest month on record since Realmark's establishment in 1989.
Industrial: Quality and functionality remain in demand
Perth's industrial market continues to attract strong interest from owner-occupiers, investors, developers and tenants, particularly in established precincts where suitable properties remain limited. Rob Dawson observes that demand is increasingly concentrated on well-located facilities that meet practical operational requirements.
At 56 Holder Way, Malaga, Rob secured the $3 million sale of a purpose-built panel and paint facility, with strong enquiry and multiple offers creating competitive tension. Meanwhile, Alex Taylor negotiated the $2.268 million sale of 16–18 Elgee Road, Bellevue, following continued buyer engagement after the initial campaign. The result demonstrates how a tailored approach can deliver outcomes even when a property requires a more considered sales process.
Looking ahead, Rob Dawson and Daniel Mackley are bringing newly constructed industrial units at 16 Clune Street, Bassendean, to the leasing market, while Daniel is also representing a substantial freestanding workshop at 24 Dellamarta Road, Wangara.
Together, these opportunities reinforce the value placed on functional industrial accommodation in established locations.
Retail: Convenience continues to shape demand
WA's retail market remains supported by population growth, resilient spending and sustained demand for everyday services. Michael Richardson identifies neighbourhood and convenience centres as a key area of activity, with food and beverage, medical, pharmacy, fitness and other essential services driving occupier demand.
The completion of leasing at Kingsford Village, Bullsbrook, is a significant example. Working alongside Alix Proudlove, Michael secured the final tenancy in September, bringing the Woolworths-anchored centre to 100% occupancy. The result reflects the importance of a balanced tenancy mix and a leasing strategy aligned with the surrounding catchment.
Michael and Fletcher Wolpers are also progressing leasing opportunities at Sunset Plaza, Ocean Reef, a new Coles-anchored neighbourhood centre designed to serve an established residential catchment.
With construction costs continuing to constrain new retail supply, well-positioned centres offering convenience and accessibility remain an important focus for occupiers and investors.
Office and development: Supply shapes the opportunity
Perth's office and development markets continue to demonstrate resilience, despite ongoing construction, labour and funding pressures. Justin Baker highlights the limited pipeline of new office developments as an important factor supporting quality assets and longer-term investment confidence.
Development activity remains encouraging, with commercial property showing less sensitivity to recent interest rate movements and tax changes than the residential sector.
At Moda Wembley, Justin secured the $912,600 off-the-plan sale of Lot 2 before the formal campaign launch, demonstrating the value of proactive buyer engagement. The mixed-use development also presents an opportunity within its ground-floor retail component, with one retail tenancy remaining available for sale or lease.
These results highlight the importance of understanding both the immediate market and the longer-term fundamentals influencing development opportunities.
Asset management: Protecting value through practical expertise
As commercial property ownership and operations become increasingly complex, effective asset management remains essential to maintaining performance and supporting occupier relationships. Gemma Hayes, Director of Commercial Asset Management, emphasises the importance of maintaining a hands-on approach, supported by strong property knowledge and meaningful relationships.
At 412 Victoria Road, Malaga, Kerry Lester provides proactive management following the leasing of the property to Surgical Dynamics by Rob Dawson and Alex Taylor. The coordinated approach supports the operational requirements of a business supplying medical and surgical products while protecting the asset's long-term value.
At 18 Mumford Place, Balcatta, Shannon McCabe manages the property occupied by Workpower, helping adapt the premises to support an organisation providing employment opportunities for people with disability and others facing barriers to employment.
With three Realmark Commercial Asset Management team members recognised as finalists in the upcoming REIWA Awards for Excellence, the quarter also reflects the expertise and commitment behind the team's ongoing work.
Looking ahead: A market that rewards informed decisions
WA's commercial market enters the second quarter with encouraging fundamentals, although interest rates, construction costs and broader economic pressures will continue to influence activity.
Industrial demand remains focused on functional, well-located facilities, while convenience-based retail and limited future office supply continue to create opportunities across their respective sectors.
For investors, owners and occupiers, the distinction increasingly lies in understanding the individual asset rather than relying on broader market sentiment.
The opportunities remain, but identifying where genuine value sits and having the expertise to act on it will be increasingly important as market conditions evolve.