Perth industrial sales approach $400m amid supply delays
Perth industrial property sales approached $400 million in the third quarter of 2026, driven largely by one distribution centre transaction, while warehouse project delays kept new supply below earlier forecasts.
Cushman & Wakefield’s MarketBeat report recorded $475.7 million in transactions over the year to date. It said the full-year total could exceed the $523.9 million recorded in 2022, with one quarter remaining.
Hesperia’s $267.7 million purchase of the Woolworths distribution centre at Perth Airport from Growthpoint accounted for much of the quarterly increase. The sale reflected a core market yield of 5.63%. Cosgrove Group also bought two assets from the Lester Group for a combined $58.2 million.
Limited supply keeps leasing competitive
The report put 2026 warehouse supply at around 95,000 square metres, covering pre-committed and speculative projects. Several facilities had moved into 2027, leaving this year’s supply set to be the lowest since 2018.
The firm expected speculative development to increase in 2027, although most projects in that pipeline had not started construction. Land shortages in core locations and project feasibility challenges continued to constrain delivery.
Perth had more than 1,400 hectares of vacant industrial land, but the report classified just over 20% as active and developer-owned. Ten lots or estates accounted for more than 60% of active supply.
Vacancy steady despite strong leasing
Almost 95,000 square metres was leased during Q3, taking the year-to-date total to approximately 275,000 square metres. Activity centred on the East and South submarkets, but net absorption was largely flat.
Overall vacancy held at 2.2%. Excluding sublease space, it was 1.6%, highlighting a tighter market for businesses seeking direct leases. The report’s vacancy measure covers buildings above 3,000 square metres, while take-up covers leases above that size and excludes renewals.
The submarket table showed vacancy of 1.4% in the North, compared with 2.3% in the South and 2.4% in the East.
Suitable workshops and properties with hardstand and yard space remained particularly scarce, prompting more occupiers to consider pre-leases where existing premises could not meet their needs.
Prime rents were unchanged over the quarter but increased 3.5% year on year, ahead of the report’s national benchmark of 2.0%. Rental increases were more pronounced for tenancies below 6,000 square metres. Incentives ranged from 5.0% to 15.0% across prime and secondary properties.
Asset quality shapes investor outlook
Prime core yields generally ranged from 6.00% to 6.25%, although some transactions achieved lower yields depending on location and tenant strength.
Cushman & Wakefield expected prime properties to be better protected from pricing pressure, while secondary assets faced greater repricing exposure as higher funding costs sharpened attention on income growth, leasing risk and capital expenditure.
The firm forecast rental growth of around 4.0% for 2026 and further vacancy declines before year-end. It also warned that expanding tenants unable to wait for pre-lease opportunities would likely need to compromise on location or building grade in some areas.
SOURCE ATTRIBUTION:
Based on reporting by Cushman & Wakefield in MarketBeat: Perth Logistics & Industrial, Q3 2026.
