Wayne Chorley, executive director at Realmark Commercial, shares his 2025 market  predictions, highlighting key trends and opportunities across Perth’s commercial property  sectors.  

From the broader economic outlook to sector-specific opportunities, here’s what could shape  the year ahead.  

WA Economy  

Western Australia's economy is likely to continue leading the nation, bolstered by its status as  Australia’s largest exporter.  

While China’s economic outlook has faced uncertainty, its $2.1 trillion debt reduction package  is anticipated to stabilise the region over the next 12–24 months.  

Given China’s role as WA’s largest trading partner, this development could positively impact  the state’s export-driven economy over the next 12–24 months, potentially strengthening its  key trade relationship.  

Interest rates are expected to see their first cut in Q1, with a possibility of settling around 3%  by the end of 2025. These factors suggest a supportive backdrop for Perth's commercial  property markets.  

Retail: Growth in local convenience  

Retail development is poised to gain momentum, with stabilised building costs and rising retail  rents driving activity.  

It’s likely we’ll see a mix of new greenfield centres and upgrades to existing hubs, while smaller  neighbourhood centres may thrive as local convenience continues to resonate more with  consumers than large regional centres.  

At Realmark, we’re excited to play a role in this transformation, assisting in the delivery of new  centres in Bullsbrook, Anketell, Midvale, and Parafield Stage 2 in Adelaide, plus six upcoming  retail and mixed-use projects throughout Perth.  

Industrial: the market leader  

The industrial sector is forecast to remain a top performer in 2025, although trends may vary by  segment. Oversupply in larger warehouses (5,000m² and above) could level rents and lead to  higher incentives as vacancy increases. 

Conversely, mid-sized spaces (1,000–3,500m²) are expected to see strong demand continue,  with vacancy rates likely to remain around 2%.  

Tight supply in this sector may further push rents and capital values upward, particularly for  high-demand industrial properties.  

Office: a suburban shift  

The office market appears to be undergoing a suburban shift, with hubs like Subiaco,  Leederville, and Northbridge expected to outperform the CBD.  

A growing preference for working closer to home - offering easier parking, shorter commutes,  and lower occupancy costs – are expected to continue shaping the market.  

Realmark is observing sustained demand from owner-occupiers for freehold suburban office  buildings. With suburban office vacancy at a record low of 9.4% and limited new supply likely  due to elevated construction costs, capital values and rents may see upward pressure.  

A positive outlook across the board  

The year ahead is shaping up to offer a range of opportunities across the commercial market.  

Retail leasing may see transformative growth, the industrial market looks to remain resilient,  and suburban office markets appear poised for continued demand.  

More Realmark readings 

Realmark Commercial announces elevated leadership structure | Commo.

Realmark Commercial welcomes Amanda Betteridge | Commo.

Realmark to support St Bart’s this Christmas | The Real Estate Conversation