Perth to welcome 14 new industrial projects by mid-2025

These will add over 130,000sqm of new stock to the market.

Five major industrial developments (≥3,000 sqm) reached completion in Perth in Q2 2024, totalling 64,850 sqm. According to JLL, there are 14 projects totalling 131,271 sqm currently under construction, expected to be completed by mid-2025.

“There are currently seven projects in the plans-approved stage, totalling 82,236 sqm and two projects in the plans-submitted stage, totalling 16,790 sqm. A significant proportion (82.0%) of these projects are speculative developments.”

Here’s more from JLL:

Occupier demand in the Perth market continued to increase over Q2 2024, with 80,169 sqm of gross take-up recorded across 13 major occupier moves (≥3,000 sqm). Activity recorded in the quarter was above the two-year quarterly average of 53,693 sqm.

Perth recorded 292,912 sqm of gross take-up over the past 12 months, significantly above the 10-year average of 189,121 sqm. Demand was led by the Transport, Postal & Warehousing (27.7%), Manufacturing (14.0%) and Construction (10.2%) sectors.

Marginal rental growth across most industrial precincts

Average prime existing net rents were unchanged in the East precinct over Q2 2024 but increased 1.6% and 1.7% in the North and South precincts respectively. On an annual basis, rents were unchanged across all precincts.

Prime midpoint yields across all precincts were stable in the quarter, following stability observed in the cost of debt environment. However, on an annual basis, yields recorded a softening of 50 basis points across all three precincts.

Outlook: Rental growth expected to remain positive

Occupier demand is expected to be strong over the short term, and despite still-elevated construction material and labour costs, speculative supply is still prominent in the Perth market.

Rental growth is expected to remain positive over the short to medium term, driven by strong ongoing occupier demand and scarcity in supply in the Perth industrial market.