Western Australia's commercial property market has finished FY25/26 much the same way it began - with resilience, confidence and a continued focus on quality assets. While global uncertainty, changing tax policy and interest rate movements have dominated headlines, activity across Perth's industrial, retail and office markets has remained driven by strong fundamentals rather than speculation.
The final quarter of the financial year reflects a market that is maturing rather than slowing. Rental growth is moderating in some sectors, investor demand remains active, and owner-occupiers continue to compete for well-located assets. Across every market segment, quality continues to outperform.
Industrial demand remains firmly grounded
The industrial market remains one of Perth's standout performers. After several years of rapid rental growth, leasing conditions have begun to normalise, with rental rates stabilising across most precincts. Demand, however, has shown little sign of easing. Owner-occupiers continue to drive purchasing activity as businesses seek long-term certainty, while investment yields have remained largely unchanged despite recent interest rate movements. That consistency reflects the confidence investors continue to place in Perth's industrial market and its long-term fundamentals.
This confidence was reflected in several key transactions during the quarter. Rob Dawson successfully completed the off-market sale of 28 Drynan Street, Bayswater, which was sold with a leaseback to the long-standing occupier, while Rob Dawson and Alex Taylor secured a three-year lease to national contractor Acrow for a 5,500sqm hardstand site at Part 610 Marshall Road, Malaga, supporting the company's civil operations expansion.
Retail growth continues in expanding communities
Retail has continued its strong performance, particularly within Perth's growing suburban communities. New neighbourhood centres are attracting national brands, while developers continue progressing projects despite broader economic uncertainty. Realmark Commercial played a key role in the successful delivery of Eglinton Village, where Michael Richardson and Alix Proudlove leased the final retail tenancies ahead of the centre's opening, welcoming Subway, Oh Wow Brow, Barber Nation and Eglinton Kebabs. The team also continued to build momentum at Maida Vale Village, achieving strong early leasing outcomes ahead of its planned opening. National operators including Australian Venue Co. and State Swim also expanded their WA footprint during the quarter, reinforcing confidence in the state's retail sector.
Quality office assets continue to outperform
The office market continues to favour quality over quantity. Turnkey office spaces with modern fit-outs and quality amenities remain highly sought after, particularly throughout Perth's city fringe. While incentives have remained between 20 and 30 per cent, net effective rents have continued to strengthen. Investor demand has also remained resilient, with sales activity largely unaffected by interest rate or tax policy changes. During the quarter, Justin Baker and Jordan Hunter successfully leased the final office tenancy at 228 Carr Place, Leederville, bringing the mixed-use asset to full occupancy, while Justin Baker negotiated the off-market sale of 5/8 Dwyer Turn, Joondalup to the long-standing occupier, highlighting continued confidence in well-positioned office assets.
Proactive management protects long-term value
Beyond transactions, proactive asset management continues to play an increasingly important role in protecting long-term value. Throughout Q4, Gemma Hayes and the Commercial Asset Management team focused on identifying operational, financial and compliance risks before they impacted performance. Through regular inspections, contractor management, tenant engagement and preventative maintenance, the team continued to safeguard asset performance while supporting tenant retention and long-term investment outcomes. This proactive approach remains central to the management of assets including 75 Bannister Road, Canning Vale and the mixed-use development at 557 Marmion Street, Booragoon, where integrated commercial and residential management continues to maximise value for owners.
Looking ahead
Looking ahead, the outlook for Western Australia's commercial property market remains positive. Proposed tax changes are expected to increase the appeal of commercial property for some investors, while improving interest rate expectations and the strength of the WA economy continue to support confidence across the sector. As Executive Director Wayne Chorley notes, Realmark Commercial will continue to focus on the factors it can control while helping clients navigate changing market conditions.
As FY26/27 begins, Perth's commercial market enters the new financial year from a position of strength. The pace of growth may be becoming more measured, but the underlying fundamentals remain intact, supported by sustained occupier demand, active investment and confidence in Western Australia's long-term economic outlook.