Limited supply supports Perth office rental outlook

Projects with nearly 300,000sqm remain in the pipeline.

Perth's CBD office vacancy rate fell to 16.3% in Q1 2026, down 0.2 percentage points from the previous quarter, while prime vacancy declined 0.3 percentage points to 14.7%, according to JLL.

JLL said the improvement was driven by centralisation strategies and expansion activity among large occupiers requiring more than 1,000 square metres. Net absorption totalled 1,300 square metres during the quarter, taking rolling annual absorption to 17,900 square metres.

The consultancy noted that no office projects are currently under construction in the Perth CBD, although 11 approved projects totalling 299,100 square metres remain in the pipeline. JLL said substantial pre-commitment levels will likely be required before new developments proceed.

Average prime net face rents were unchanged at AUD674 per square metre per annum, while prime net effective rents increased 2.2% over the quarter to AUD298 per square metre per annum. Prime office yields remained stable at 7.38%, with secondary yields holding at 9.00%.

Looking ahead, JLL expects limited new supply to support stronger growth in prime effective rents, although investor activity is likely to remain selective amid global economic uncertainty and renewed inflationary pressures.