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.
Curious about how these trends could align with your goals?
Contact Wayne Chorley, executive director at Realmark Commercial, for insights and advice on navigating the 2025 commercial landscape.