The industrial asset class continues to reign as the most coveted and high-performing commercial asset class across the nation.
However, prevailing uncertainties regarding financing, interest rates, commodity prices, and the economy at large have induced a sense of prudence among vendors,
buyers, and tenants, causing a slight dip in transaction activity for both leasing and sales.
Despite this downturn, vacancy rates in the metropolitan area remain low, with a slight upsurge in smaller and larger assets being made available to the market. The absorption of 500-5,000 sqm assets has been commendable, but an increase in supply has also been noted, which is likely to keep vacancy rates slightly higher than the record lows of the previous year. This will inevitably affect the rental market, which has experienced robust growth over the years.
Overall, the industrial market continues to hold its position as the prime investment market. Nonetheless, 2023 is forecasted to usher in a period of stability for Perth's industrial sector, in contrast to the dynamic transaction activity observed in the past two years. Notwithstanding this, the market remains healthy and active.
