Key takeaways
Australia's commercial property market has shown signs of growth throughout 2025.
While supply is increasing nationally, it's still outweighed by demand in Western Australia.
A measured approach should be taken to finding and securing warehouses for lease.
New industrial space and warehouse developments are expected in Perth in the coming years.
Prospective warehouse tenants should factor expected market trends into lease considerations.
The Australian commercial property market has shown positive signs of growth in recent months, with both the retail and industrial sectors seeing positive returns and the office sector beginning to stabilise.
KPMG Australia's June 2025 Commercial Property Market Update reveals income returns in the retail sector are at their highest since mid-2016, while industrial sector returns sit at 3.3% after two consecutive quarters of positive growth.
For business owners in the manufacturing, retail and logistics sectors, market trends suggest a positive outlook for commercial leasing, with supply gradually increasing on a national scale.
However, finding warehouses for lease with desirable lease terms, at a reasonable cost and in a strategic location may still be a little challenging for the average prospective tenant
For businesses operating in or out of Western Australia, the leasing market for industrial space in Perth could represent an attractive prospect for investments into suitable space.
For more insight, below we explore the current commercial real estate market in the Perth metropolitan region and discuss some top tips for finding the perfect warehouse for lease in Perth.
Overview: Perth commercial property market 2025
If you're looking for warehouses for lease or commercial property for rent in Perth, the long and short of it is that while now may be a better time than in recent years to find a suitable space, cost and availability remain potential roadblocks.
To be more specific, market conditions look favourable for commercial real estate agents, with demand and sale price continuing to grow, but low supply is creating a challenging market for tenants.
Research published by the Real Estate Institute of Western Australia (REIWA) suggests that Perth's commercial property market, including industrial properties, has shown strong signs of growth through 2025.
Key insights to note include:
- The annual median sale price per sqm for industrial space rose by over 15% up to June 2025.
- Almost 40% of industrial space in Perth is priced between $1 million to $5 million.
- Almost 1,100 sales of industrial properties in Perth were recorded between 2024 to 2025.
- South West Perth saw the highest number of industrial space sales (302).
- REIWA suggests "buyers are competing for fewer available properties".
- Sales volume for industrial space in Perth has dropped by over 4.5% during 2025.
While the market does seem to favour real estate agents at present, more interest can eventually lead to more supply and better conditions for warehouse rental tenants.
REIWA suggests demand for rental property in the industrial sector will continue to grow, potentially leading to new warehouse or industrial space developments across areas like South East Perth in the coming years.
Top tips for finding the perfect warehouse for lease in Perth
For prospective commercial property tenants putting serious consideration into finding warehouses for lease in Perth, a calm and measured search process can provide strategic advantages.
A comprehensive understanding of the commercial real estate market isn't necessarily required to find a suitable property that meets your operational needs, but the information covered above should provide valuable insight into how best to approach negotiations.
With all this in mind, below are some top tips for finding and evaluating warehouses for lease in Perth
1. Conduct thorough market research and plan ahead
Oftentimes, the key to striking a good deal is to make your move at the most opportune time.
Whether you're looking for a warehouse for lease or purchase, the key is to enter negotiations on a strong footing, with a complete understanding of both your needs and expected market trends.
The more informed you are about key factors like supply in your chosen location, average sale prices over time and planned developments of new or redevelopments of older industrial properties, the less vulnerable you'll be to unreasonable demands and pressure tactics imposed on you by property owners.
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Where possible, give yourself a minimum of 6 months to monitor the market, review historic trends and seek expert advice on expected developments.
Tip: The better informed you are, the better able you'll be to negotiate a lower rent amount and more attractive lease terms that account for future developments.
2. Consider the size and scope of your ideal industrial space
Alongside financial factors, ensuring you find a warehouse for lease that can help you meet your key business objectives must be considered a top priority.
Take time to consult with your business operations leaders to draw up a list of essential requirements for your ideal warehouse space. Key considerations include dimensions, square footage, the layout of the property, potential for expansion, and any other factors directly tied to your unique business goals.
Carefully consider how much room you need now, whether your operational requirements are likely to change significantly over the duration of your lease and whether additional amenities like on-site office space and air conditioning across workspaces should be viewed as primary considerations.
Planning out how you intend to use the space over the duration of your tenancy will help you keep associated costs down as your business grows, as well as minimise risks associated with things like budget constraints that could hinder your operational efficiency.
3. Factor location into commercial real estate requirements
You may have decided that Perth is the ideal location for your new warehouse space, but where exactly in the city should you focus your search?
Your answer will depend on your unique warehouse operations, factoring in key considerations like your reliance on transporting goods in and out of your facility, ensuring easy access to key internal areas and maintaining compliance with local regulations concerning things like noise pollution.
Note: If you rely heavily on logistics, for example, your ideal warehouse for lease may be situated as close to major transport routes as possible to help keep your total transportation costs down.
Of course, this will likely be reflected in a higher percentage rent, but if you're moving vast amounts of goods daily, efforts to reduce transportation costs may ultimately lead to significant savings over time.
4. Carefully review proposed lease agreements and terms
Above almost all else, you must ensure proposed lease terms for your new warehouse or industrial space meet both your current and expected future needs.
While it's likely that supply will increase in the coming years, the availability of warehouses for lease in Perth could remain limited for some time. This may be leveraged by property owners to propose less-than-desirable lease terms in the hope that desperation puts pressure on tenants.
Tip: Avoid falling into this trap at all costs. Before signing on the dotted line, carefully review lease terms and consider how they weigh up to your plans for future growth.
Several factors should be closely examined, including proposed lease duration and renewal options, as well as whether the lease agreement allows for future expansion or early termination should you find a more appropriate space in the future.
Finally, check maintenance responsibilities, specifically which duties are classed as your landlord's responsibility and whether they have a good track record for completing work. Should things like HVAC maintenance go overlooked, your business operations could be significantly impacted by major repairs.
Final Word
While the commercial real estate market is weighted in favour of landlords at present, signs suggest supply may increase in the coming years to give tenants more bargaining power.
Those looking for warehouses for lease in areas like Perth should factor expected market trends into negotiations, with considerations focused on lease duration and termination clauses to help promote future flexibility.
