Perth CBD office rents to rise by 6.9% annually over the next five years

The increase will be driven by a limited supply pipeline.

Prime office rents in the Perth CBD are expected to rise strongly over the next five years due to a limited development pipeline, according to global real estate services firm JLL.

JLL forecasts prime net effective rents will grow by an average of 6.9% annually, supported by constrained new supply that is expected to tighten market conditions and support landlord pricing power.

Despite the positive rental outlook, JLL says investors are likely to remain selective on acquisitions amid ongoing global economic uncertainty and re-emerging inflationary pressures, which could slow the current monetary policy easing cycle.

Here’s more from JLL:

The headline office vacancy rate in the Perth CBD decreased 0.6 percentage points (pps) to 16.5% in Q4 2025. Similarly, the prime grade vacancy rate fell 0.6 pps to 15.0%, driven by centralisation and expansionary activity by large occupiers (>1,000 sqm).

Net absorption in Q4 2025 totalled 10,800 sqm; up significantly from the previous quarter’s figure of -84 sqm. On a rolling annual basis, Perth CBD net absorption totalled 19,200 sqm.

Limited supply pipeline in the Perth CBD

There are no projects currently under construction in the Perth CBD, with new office supply additions expected to remain low in the short to medium term.

There are 11 projects in the Perth CBD with plans approved, totalling 299,100 sqm. However, proposed new office projects are likely to require substantial pre-commitment to proceed.

Prime office yields unchanged over the quarter

Average prime net face rents were unchanged over the quarter at AUD 674 per sqm p.a., however reflecting year-on-year growth of 1.6%. Average prime net effective rents were also stable at AUD 291 per sqm p.a., with year-on-year growth of 1.7%.

Perth CBD prime office yields were stable over Q4 2025 at a midpoint of 7.38%, with secondary yields also stable at a midpoint of 9.00%. On an annual basis, prime office yields were unchanged.