Development activity in the Perth metropolitan area is predominantly pre-commitment driven, particularly for larger buildings, with few developers prepared to build speculatively.
Industrial space that is being actively marketed (for warehouse buildings over 2,000m²) has increased by 8.6% to 135,490m² since the beginning of 2013.
Rents have remained strong, yet steady. Prime-grade rents are on average $115/m² with Secondary-grade rents on average $82/m² across the metropolitan area.
Average Prime-grade core market yields have tightened by around 25 basis points over the past year and now range between 7.75% and 8.50%. Secondary-grade core market yields are on average between 8.75% and 10.00%
Source : Knight Frank