Occupier demand slowed in Q1 2026

• Occupier demand in the Perth industrial and logistics market decreased over Q1 2026, with 77,500 sq.m. of gross take-up recorded across 13 major occupier moves (≥3,000 sq.m.). Activity recorded in the quarter was also below the two-year quarterly average of 94,500 sq.m.
• Gross take-up totalled 400,200 sq.m. over the past 12-months, above the 10-year average of 228,300 sq.m. Demand was led by the transport, postal & warehousing (37.9%), manufacturing (16.8%) and retail trade (7.7%) sectors.

Five major developments completed over the quarter

• Five major completions (≥3,000 sq.m.) were recorded over Q1 2026, totalling 65,200 sq.m. There are currently 12 projects under construction totalling 143,100 sq.m., with the latest project expected to complete by Q3 2027.
• Ten projects totalling 131,200 sq.m. are in the plans approved stage, and three projects totalling 177,800 sq.m. are in the plans submitted stage. The majority (87.1%) of these projects have not been pre-committed.

Prime rents and yields unchanged over Q1 2026

• Average prime existing net rents were stable across all precincts over Q1 2026. Rents were also unchanged on an annual basis across all precincts.
• Prime midpoint yields were stable at 6.25% across all precincts over the quarter, but tightened 25 basis points on an annual basis.

Outlook: Low supply and robust occupier demand to drive vacancy down

• The vacancy rate is expected to remain low as occupier demand remains robust and will continue to be supported by the transport, postal & warehouse and manufacturing sectors.
• Rental growth levels are expected to be maintained due to low supply and strong occupier activity, while prime yields are expected to remain stable, as markets continue to navigate broader global economic uncertainty.