WA’s commercial property market continued to navigate a measured and evolving landscape through the third quarter of FY 2025/26, with activity reflecting a balance between strong underlying fundamentals and emerging economic headwinds. Realmark Commercial’s Q3 Review highlights a market where demand remains present, though increasingly selective, as occupiers and investors respond to rising cost pressures and shifting expectations.
The WA economy continues to outperform nationally, driven by the strength of the resources sector. At the same time, factors such as inflation, rising oil prices and the prospect of higher interest rates are shaping more considered decision-making across the market. Against this backdrop, consistent execution and a focus on controllable outcomes have positioned Realmark Commercial as a finalist in the national REIA Commercial Agency of the Year awards, reinforcing the strength of its approach in a changing environment.
Industrial leasing conditions have begun to normalise, however demand remains firmly centred on quality assets. Tenants are showing greater discipline, prioritising modern facilities with strong access, functionality and location. Campaigns led by Rob Dawson and supported by Alex Taylor continue to demonstrate this shift, with high-quality assets attracting strong enquiry, including the off-market leasing of 122 Sultana Road West in High Wycombe to a national tenant on a five-year term.
Retail activity remains tightly held, with limited stock continuing to drive competition. Investor appetite, particularly from interstate buyers, has contributed to yield compression in key segments such as fast food assets, while neighbourhood shopping centres continue to see movement across Perth. Michael Richardson, alongside Fletcher Wolpers and Alix Proudlove, delivered strong leasing outcomes including the introduction of national operator Rashays at Mirrabooka Common, reinforcing confidence in well-positioned retail precincts.
In the office sector, renewed investor confidence is creating increased competition with owner-occupiers, particularly for well-presented, strategically located assets. Justin Baker and Jordan Hunter have continued to see strong engagement across city-fringe markets, with assets such as 8/50 Oxford Close in Leederville attracting interest from both investors and businesses seeking turnkey solutions in tightly held precincts.
Sales activity across the quarter further reinforced depth in demand for quality industrial assets. The off-market sale of 23 Jackson Street, Bassendean, led by Rob Dawson, achieved $5.4 million, highlighting continued investor appetite for established properties within tightly held inner-east locations.
Across development and leasing, momentum continues to build in growth corridors. Michael Rowe and Fletcher Wolpers secured a long-term 20-year lease to a national childcare operator at 434 Safety Bay Road, exceeding owner expectations and reinforcing the strength of essential-service-based tenancy demand. Meanwhile, upcoming projects such as the Maida Vale neighbourhood centre, led by Michael Richardson and Fletcher Wolpers, reflect ongoing confidence in retail development anchored by major brands.
Asset management remains a critical pillar, particularly as ownership structures evolve. Intergenerational transfer of wealth is becoming increasingly prominent, requiring more structured engagement and education to support new decision-makers. Under the leadership of Gemma Hayes, and supported by Scott Chaproniere, proactive management strategies continue to focus on income protection, tenant retention and long-term portfolio stability, as demonstrated in appointments such as 234 Stirling Highway, Claremont.
Leasing opportunities also continue to emerge across Perth’s industrial corridors, with Daniel Mackley driving engagement on new developments such as 47 Prindiville Drive in Wangara, where modern design and strategic positioning are attracting businesses seeking flexibility and accessibility.
Collectively, the activity across Realmark Commercial’s Q3 Review reflects a market that remains resilient, though increasingly driven by quality, strategy and timing. While broader economic conditions continue to evolve, demand remains for well-located, well-executed opportunities.
As the financial year moves toward its final quarter, the outlook remains grounded in fundamentals. When assets are positioned correctly and supported by the right expertise, opportunities continue to present - ensuring clients are equipped to act with clarity and confidence in a market that rewards considered decisions.
Read the full Realmark Commercial Q3 FY 25/26 review here