PERTH INDUSTRIAL VACANCY & MARKET OVERVIEW - JUNE 2024

The industrial property sector continues to be the most desirable and top-performing commercial real estate asset class nationwide. Limited availability of stock has statistically led to a decrease in leasing and sales transactions. Many buyers have caution relating to financing, future interest rates, commodity prices, and the state of the economy which has vendors, buyers, and tenants to be more considered in their upcoming property decisions.

Although vacancies remain low across the metropolitan area, there has been an increase in the availability of smaller and larger assets, while properties ranging from 500 to 5,000sqm have experienced strong absorption. Although the supply of industrial properties has seen a modest uptick, for now demand is helping to keep vacancy rates in check. It is expected that we will enter into a period of stabilisation following several years of exceptional performance throughout the 2019-2024 period.

Perth, despite being the most sought after industrial investment market, has experienced a lower transaction volume in 2024, mirroring the results seen in 2023 which is surrounded by the lack of available properties in the market for sale or lease compared to the amount witnessed during the 2021 and 2022 period.