After several years dominated by industrial assets, Perth’s office and retail property markets are showing signs of renewed energy, and astute investors are starting to take notice.

According to Matthew Edwards, Associate Director, Commercial Sales & Leasing at Raine & Horne Commercial WA, the tide is turning as confidence returns on the back of interest rate cuts, population growth, and record infrastructure investment.

“Industrial has gone berserk over the last four or five years, but office and retail are now showing strong signs of reemerging,” Matthew said. “We’ve seen the worst of the cost-of-living pressures, and people have adjusted, and we’re starting to see expansion activity again.”

Office demand rising from the ground up

Mathew said the WA office market was gaining momentum in early 2020 before COVID brought it to a halt, along with ten consecutive interest rate increases. “Now, after a challenging few years and three interest rate cuts in 2025, the office market is starting to reemerge and has a really bright future for the next couple of years.”

“Quality, modern offices located near train stations and amenities are attracting significant attention,” he noted. “The metrics for new office construction simply don’t stack up right now, which means existing assets have enormous potential for capital growth. If you’re buying well today, you could see rapid value appreciation over the next couple of years.”

Recent transactions handled by Raine & Horne Commercial WA reflect this renewed activity, including properties in West Perth, Nedlands, Joondalup, South Perth, Morley, and Subiaco, all achieving strong enquiry levels and competitive sales results.

Retail confidence slowly returns

The retail sector, while still lagging behind the industrial and office sectors in volume, is showing similar green shoots. A good example is the recent sale of 677 Beaufort Street, Mount Lawley[i], a high-profile property that generated “phenomenal” interest thanks to its prestigious location and restaurant heritage.

“The owners had experienced a few setbacks with previous finance issues with buyers, but once we came on board, the market response was incredible,” Matthew said. “Ultimately, it sold for $2.3 million, which was a strong outcome given the earlier challenges.”

Why now is the time for investors and SMSFs to reconsider office and retail

Matthew believes many self-managed super funds and private investors are overlooking a significant opportunity.

“Right now, you can buy an office for less per square metre than an industrial warehouse,” he said. “That’s unheard of, and it tells you that office and retail assets are significantly undervalued. As rents rise and yields normalise, the potential upside is huge for investors and SMSFs.”

He predicts that as office rents continue to climb and confidence returns, “these sectors could effectively double in value” over the next two to three years, particularly in high-amenity areas close to major transport corridors.”

For all your commercial real estate sales, leasing and property management needs in Western Australia, contact Raine & Horne Commercial WA on 08 6444 7200.

[i] https://www.rhcommercial.com.au/wa/properties/677-beaufort-street-mount-lawley-6050-western-australia