Perth is currently a tenant’s market and is likely to remain that way for the foreseeable future. Here’s a quick snapshot ...
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The Property Council of Australia’s latest Market Report shows a slight decline in the overall vacancy rate in Perth CBD, dropping to 15.1% in Q4 2024 from 15.5% in H1. However, this still sits above the national average of 13.7%.
Within the various asset classes, Premium Grade vacancy fell to 9.4%, down from 12.5% in H1, driven by strong leasing activity particularly for prime stock, as 44% of leasing deals in the Perth CBD throughout 2024 involved tenants relocating to higher quality buildings. A-Grade vacancy rose slightly from 13.9% to 14.2%, while B-Grade experienced the most significant increase, rising to 21.3% from 20.7%.
In 2024, net supply totalled 21,288 sqm, driven by the addition of 256 St George Terrace and the withdrawal of the D Grade asset at 8–10 Esplanade (1,439 sqm) for refurbishment. Despite the new supply in the second part of the year, CBD vacancy remained stable. This was largely due to Fortescue relocating into the newly refurbished 256 St George Terrace, consolidating its workforce under one roof and vacating the Fortescue Centre in East Perth after nearly two decades.
Looking ahead, 2025 will bring 41,193 sqm of new and refurbished stock, including:
A-Grade assets recorded the highest increase in face rents, rising by 5 percent from H1 2024 to reach $672 psqm. Premium Grade face rents also grew, increasing by 3.3% to $775, while B-Grade rents experienced a more modest uplift of 2.2%, reaching $475. Despite these gains, elevated incentives have continued to moderate face rent growth.
In terms of effective rents, Premium Grade declined by 3.2 percent to $426. A-Grade improved by 2.7% to $344, whereas B-Grade experienced a 3% decrease to $228.
Incentives across the Perth CBD remain high. However, slight reductions were observed for A and B Grade assets. Premium Grade incentives rose by 3% compared to H1 2024, now sitting at 45%. In contrast, A-Grade and B-Grade incentives decreased slightly by 0.5%, currently at 47.5% and 49.5% respectively. Whilst A and B have decreased, incentives are still reflective of vacancy rates overall as Premium Incentives are the lowest in the market.
Sublease in Perth CBD stands at 1.5% of total stock (26,800 sqm), increasing 16,786 over 2024 and the beginning of 2025. The substantial increase is attributed to large tenants including Chevron adding 7,400 sqm of space at One The Esplanade and Worley at Dynons Plaza. This marks a substantial increase in early 2025, although levels are still below the 10-year average of 37,000 sqm. Other industries that drive Perth's sublease availability include the mining and resource industry, as well as the professional, scientific and technical services industries.
Some of the recent notable commitments shaping the Perth CBD market include:
The "flight to quality" trend continues to shape leasing dynamics, with tenants targeting higher-quality, amenity-rich spaces to enhance employee experience. As a result, Premium Grade vacancy has declined to 9.4%, while B Grade remains elevated at 21.3%. Around 44% of 2024 leasing activity involved tenants upgrading to better-quality assets, reinforcing the need for landlords to invest in refurbishment and ESG-aligned upgrades to remain competitive.
Perth CBD continues to outperform national counterparts in workplace attendance, with the Property Council of Australia reporting occupancy at 90%. This surge reflects growing business confidence and a renewed focus on in-office collaboration, further strengthening demand for centrally located, high-quality buildings.
The Perth CBD is heading into a period of limited new supply, with Nine The Esplanade the only new development currently under construction. This project is set to complete in 2025 and is already ~80% pre-committed. Beyond this, there are no projects firmly committed, and only two mooted developments, 15 and 21 The Esplanade, which are forecast to deliver ~95,000 sqm by 2029/30. This constrained pipeline is likely to tighten availability, elevate competition for premium stock, and place upward pressure on rents in the medium to long term.
Tenant CS is a commercial tenant advisory business that offers tenant representation services in Perth. We can also cater to organisations across Australia, with a particular focus on Sydney, Melbourne, Brisbane, Adelaide and Canberra.
We represent you, the tenant, and our in-depth knowledge of the Australian leasing market gives our clients a competitive advantage when it comes to finding a space or negotiating a commercial lease.
If you’re on the hunt for tenant representation services in Perth, book a call with our team today!
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Perth is currently a tenant’s market and is likely to remain that way for the foreseeable future. Here’s a quick snapshot ...
The Property Council of Australia’s latest Market Report shows a slight decline in the overall vacancy rate in Perth CBD, dropping to 15.1% in Q4 2024 from 15.5% in H1. However, this still sits above the national average of 13.7%.
Within the various asset classes, Premium Grade vacancy fell to 9.4%, down from 12.5% in H1, driven by strong leasing activity particularly for prime stock, as 44% of leasing deals in the Perth CBD throughout 2024 involved tenants relocating to higher quality buildings. A-Grade vacancy rose slightly from 13.9% to 14.2%, while B-Grade experienced the most significant increase, rising to 21.3% from 20.7%.
In 2024, net supply totalled 21,288 sqm, driven by the addition of 256 St George Terrace and the withdrawal of the D Grade asset at 8–10 Esplanade (1,439 sqm) for refurbishment. Despite the new supply in the second part of the year, CBD vacancy remained stable. This was largely due to Fortescue relocating into the newly refurbished 256 St George Terrace, consolidating its workforce under one roof and vacating the Fortescue Centre in East Perth after nearly two decades.
Looking ahead, 2025 will bring 41,193 sqm of new and refurbished stock, including:
A-Grade assets recorded the highest increase in face rents, rising by 5 percent from H1 2024 to reach $672 psqm. Premium Grade face rents also grew, increasing by 3.3% to $775, while B-Grade rents experienced a more modest uplift of 2.2%, reaching $475. Despite these gains, elevated incentives have continued to moderate face rent growth.
In terms of effective rents, Premium Grade declined by 3.2 percent to $426. A-Grade improved by 2.7% to $344, whereas B-Grade experienced a 3% decrease to $228.
Incentives across the Perth CBD remain high. However, slight reductions were observed for A and B Grade assets. Premium Grade incentives rose by 3% compared to H1 2024, now sitting at 45%. In contrast, A-Grade and B-Grade incentives decreased slightly by 0.5%, currently at 47.5% and 49.5% respectively. Whilst A and B have decreased, incentives are still reflective of vacancy rates overall as Premium Incentives are the lowest in the market.
Sublease in Perth CBD stands at 1.5% of total stock (26,800 sqm), increasing 16,786 over 2024 and the beginning of 2025. The substantial increase is attributed to large tenants including Chevron adding 7,400 sqm of space at One The Esplanade and Worley at Dynons Plaza. This marks a substantial increase in early 2025, although levels are still below the 10-year average of 37,000 sqm. Other industries that drive Perth's sublease availability include the mining and resource industry, as well as the professional, scientific and technical services industries.
Some of the recent notable commitments shaping the Perth CBD market include:
The "flight to quality" trend continues to shape leasing dynamics, with tenants targeting higher-quality, amenity-rich spaces to enhance employee experience. As a result, Premium Grade vacancy has declined to 9.4%, while B Grade remains elevated at 21.3%. Around 44% of 2024 leasing activity involved tenants upgrading to better-quality assets, reinforcing the need for landlords to invest in refurbishment and ESG-aligned upgrades to remain competitive.
Perth CBD continues to outperform national counterparts in workplace attendance, with the Property Council of Australia reporting occupancy at 90%. This surge reflects growing business confidence and a renewed focus on in-office collaboration, further strengthening demand for centrally located, high-quality buildings.
The Perth CBD is heading into a period of limited new supply, with Nine The Esplanade the only new development currently under construction. This project is set to complete in 2025 and is already ~80% pre-committed. Beyond this, there are no projects firmly committed, and only two mooted developments, 15 and 21 The Esplanade, which are forecast to deliver ~95,000 sqm by 2029/30. This constrained pipeline is likely to tighten availability, elevate competition for premium stock, and place upward pressure on rents in the medium to long term.
Tenant CS is a commercial tenant advisory business that offers tenant representation services in Perth. We can also cater to organisations across Australia, with a particular focus on Sydney, Melbourne, Brisbane, Adelaide and Canberra.
We represent you, the tenant, and our in-depth knowledge of the Australian leasing market gives our clients a competitive advantage when it comes to finding a space or negotiating a commercial lease.
If you’re on the hunt for tenant representation services in Perth, book a call with our team today!
We acknowledge the Traditional Custodians of the lands on which we work. Our offices are located on the land of the Gadigal peoples of the Eora Nation and the Wurundjeri peoples of the Kulin Nation. We acknowledge their continued connection and contribution to land, water and community, and pay our respects to Elders past and present.
We’re proud to be an inclusive workplace, where diversity in all its forms are valued and every member of our team is encouraged to bring their whole self to work.
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