Western Australia’s commercial property market remains mixed in 2025, with industrial and retail sectors showing resilience, while office assets face elevated vacancy and selective investor interest.
Industrial Sector: Resilient but Tightening
WA’s industrial market continues to perform strongly, underpinned by robust occupier demand, limited supply, and monetary policy easing.
According to Opteon’s Industrial Pulse Check:
- Metro and regional WA both register “Elevated” activity, reflecting sustained leasing momentum.
- National vacancy sits at 2.8%, with WA contributing to one of the tightest global vacancy environments, 2.0% as at Q2 2025.
- Yields have compressed throughout 2025, with WA’s prime industrial yields now ranging between 5.75% and 6.25%, trending downward in line with national patterns.
- Owner-occupiers are leading the industrial market, with record prices being achieved on the back of a shortage of supply.
This resilience is supported by WA’s logistics and resource-linked demand, though global economic uncertainty remains a watchpoint.
Office Sector: Softening with Selective Demand
The WA office market is navigating a period of adjustment.
According to the Property Council’s July 2025 Office Market Snapshot:
- Perth CBD vacancy rose to 17.0%, the second highest nationally.
- West Perth vacancy increased to 13.0%, with net absorption turning negative.
- Despite elevated vacancy, premium-grade assets with strong ESG credentials and long WALEs remain in demand, particularly in the sub-$50M transaction range.
- Opteon’s Office Pulse Check categorises WA’s metro office market as “Resting,” indicating stabilisation after prior declines.
Investor sentiment is cautious, with buyers targeting modern, well-leased buildings, while older stock faces pressure.
Retail Sector: Buoyant and Broad-Based
WA’s retail market shows broad-based strength, driven by consumer spending, population growth, and limited retail floor space.
- Opteon’s Retail Pulse Check places all metro regions, including WA, in the “Elevated” category, with regional WA also showing moderate activity.
- Prime retail yields are stable, currently ranging between 6.00% and 6.50%.
- Investor demand has firmed for neighbourhood shopping centres, with several transactions occurring through 2025.
- Indicators show stable supply and rising demand, with quarterly value change trending positively.
Retail assets, particularly those in growth corridors and anchored by essential services, are attracting capital, buoyed by demographic tailwinds.
Across sectors, WA’s commercial market is navigating a complex landscape shaped by interest rate movements, population growth, and sector-specific dynamics.
For a deeper dive into national trends and sector breakdowns, explore the full October edition of Opteon’s Property Pulse Check.
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