Perth Industrial & Logistics Land Supply

Key points:

• Approximately 32% of Perth’s industrial zoned land is currently undeveloped.
• Only 8% of Perth’s total industrial zoned land is expected to become available for development in the next five years - with the bulk located in Perth’s outer markets, in non-core industrial locations.
• Land availability is particularly constrained in Perth’s core industrial markets, where only around 457 ha, equivalent to approximately 3% of total industrial zoned land, is expected to be available for development over the next five years.
• Occupier demand in Perth remains strong with gross take-up reaching approximately 409,000 sqm in the rolling 12 months to 1H 2026, more than double the long-run average of around 194,000 sqm. Transport, Postal & Warehousing, Retail Trade and Mining have been key demand drivers over the past five years.
• Elevated supply over the past few years has been rapidly absorbed with vacancy remaining below 2% since 2H21 and currently sits around 1%, well below CBRE’s estimated equilibrium rate of ~4%.
• The land constraints and strong demand have seen average 1.6 ha industrial land values increase sharply by approximately 93% over the past five years.
• The sharp increase in land values and construction costs is driving a structural uplift in economic rents in Perth, which are up by 116% since the end of 2020.
• The development pipeline is set to contract materially, with average annual new supply falling from approximately 230,000 sqm over 2023–2026 to around 71,000 sqm over 2027–2030.
• Scarcity of serviced land in established markets, combined with a declining development pipeline and persistently low vacancy, is expected to support further land value and rental growth and place downward pressure on incentives over the medium term