PERTH INDUSTRIAL OVERVIEW

During 2021 the demand for industrial assets across Australia was outstanding, investors continued to actively compete for assets resulting in new highs in transaction volumes, capital values and lows in yields. Taking advantage of the low interest rate environment and in the quest to secure higher yielding investments saw many first-time buyers make their first foray into commercial property while interstate buyers looked to WA for its attractive yield proposition. Owner occupiers also looked to take advantage of the low supply environment, sheltering from rental increases tipped to occur as vacancies reduced.

With interest rates showing signs of increase, inflation at high levels and the Federal election, there has been some caution return to the market which has put a dampener on enquiry and may feed into reduced sales. Conversely, the high demand for warehousing, logistics, manufacturing and growth in small business has kept vacancies low and rents elevated during a time of limited new supply.