After several years of breakneck demand and record low vacancy, Australia’s industrial market is entering 2026 on much calmer footing. Rather than a downturn, this shift is more about conditions normalising than the market pulling back, with Perth continuing to follow its own path.
In this article, we highlight the key trends and insights from industry outlooks to give you a clear overview of what’s shaping the Perth industrial property market in 2026.
National industrial property outlook
Across Australia, industrial vacancy rates have lifted off the pandemic-era floor but remain below long-term averages. The national industrial and logistics vacancy rate was sitting around the 2% high mark in mid-2025 and is expected to remain under 4% as the pipeline of new supply begins to moderate.
Key industry projections for this year include:
- Vacancy stabilises, then gradually tightens
The 2023–24 supply wave, particularly on the east coast, pushed vacancy into the 3–5% range in many markets. As building project completions slow from 2026 onwards, those vacancies are expected to level out and gradually trend down over the next two to five years. - Rental growth slows but does not disappear
The double-digit rental growth seen between 2021 and 2023 has eased. Effective rental growth is now expected to be more subdued on average, with a growing gap between prime infill locations and more generic outer-ring estates. - Less speculative development, more pre-commitment
Developers and commercial builders are shifting down the risk curve. Speculative stock still exists, but there is a stronger focus on pre-leases and income security before projects proceed. - Industrial remains the resilient asset class
Despite higher funding costs and some valuation uncertainty, the industrial and logistics sector remains a preferred choice for many investors. As interest rates stabilise and eventually ease, there is an expectation that yields will stabilise and, in some cases, compress again for high-quality assets.
In short: no crash, no new boom. Instead, the industry will see a more controlled, data-driven phase where location and asset quality matter even more.
How each capital city is positioned for 2026
Each capital city is entering 2026 from a slightly different starting point.
- Sydney has seen vacancy normalise after a large industrial construction project cycle, especially in its major western corridors. Incentives have risen, but there is still strong demand for well-located infill sites near ports, intermodal facilities, and motorways. Rental growth is expected to be modest in prime locations, with tenants having greater negotiation power for large, generic stock.
- Melbourne has moved into the mid-4% vacancy range as elevated supply and softer demand work through the system. Even so, this remains below pre-2020 norms. Outlook commentary points to improved economic growth and continued demand for west-side distribution hubs and well-connected infill estates, with prime vacancy expected to stabilise relatively quickly.
- Brisbane is sitting in the mid-3% vacancy range. Recent take-up has absorbed a meaningful amount of new space in the South and TradeCoast submarkets. Rental growth has eased from peak levels but remains positive, especially in 3,000–8,000 sqm infill tenancies. With a moderated building project pipeline and strong infrastructure and Olympics-related activity, 2026 is expected to bring balanced vacancy and moderate rental growth.
- Adelaide is one of the tightest markets in the country, alongside Perth, with industrial vacancy in the mid-1% range. Limited new serviced land and steady demand suggest conditions will stay landlord-friendly, with strong competition for modern, well-located assets.
Perth industrial property market
Perth continues to stand apart from the rest of the country. Recent analysis shows Perth’s industrial market has the lowest vacancy among capital cities, with metro rates around 2% and some northern precincts near 1%, leaving very little space available. The market is land-constrained and largely owner-dominated, with limited serviced industrial land and many assets held by long-term investors or owner-occupiers, restricting turnover. Take-up over the past 12 months has exceeded the 10-year average, while new construction remains modest. Demand is anchored by logistics, resource-related services, and local manufacturing, which tend to remain stable through market cycles.
Looking ahead, Perth in 2026 is likely to see:
- Vacancy staying well below national averages, especially in the core north, south and east corridors.
- Ongoing rental growth for well-specified, well-located assets, albeit at a more sustainable pace than the 2021–23 surge.
- Continued competition for serviced land in areas such as Neerabup, Muchea and Wangara in the north; Wattleup, Cockburn, Kwinana and Hope Valley in the south; and Bassendean, Midvale, Hazelmere and Kewdale in the eastern belt.
- More focus on upgrading or extending existing facilities where tenants cannot easily relocate to higher-quality space.
Key factors influencing industrial building
- Vacancy stabilising, then tightening in core locations
National vacancy is moving towards equilibrium. In Perth and Adelaide, the starting point is already tight, and there is limited new land. The result: competition will remain intense for quality sites and buildings in the main industrial corridors. - Moderate rent growth with strong divergence
Expect mid-single-digit rental growth for prime and well-located secondary assets, with flatter conditions for generic or fringe stock. In Perth, low vacancy and higher construction and financing costs will continue to support upward pressure on quality space. - Less speculative stock, more bespoke solutions
Fewer speculative builds will appear on the market. More projects will need strong pre-commitment or clear owner-occupier business cases to get moving. This favours owners and occupiers who can plan ahead and brief clearly. - Flight to quality in design, access and operations
Tenants are using this calmer phase to upgrade into better-located, operationally efficient buildings – closer to ports, airports, major freight routes and population centres. In WA, this reinforces the importance of the Neerabup/Muchea/Wangara, Wattleup/Cockburn/Kwinana/Hope Valley and Bassendean/Midvale/Hazelmere/Kewdale corridors. - Operational efficiency and ESG baked into design
More occupiers expect facilities that support automation, energy efficiency, solar, provision for batteries and EV charging, and better staff amenities. Industrial design is moving further away from four walls and a yard towards purpose-built operational infrastructure.
What this means for Perth owners, commercial builders and occupiers
For the east coast, 2026 looks like a year of consolidation after a major supply wave: more choice, more negotiation, and selective opportunities.
For Perth, 2026 remains a market of tight margins and high stakes. Very low vacancy rates, limited serviced land, strong demand, and rising construction and operating costs put extra weight on every decision regarding land use, access, staging, and specifications. How a site is used is now just as important as its location.
How Built Ink is setting the tone for 2026
At Built Ink, we see our role as helping clients navigate a market where there’s little margin for error by delivering smarter industrial construction services with the support of experienced commercial construction companies and commercial builders.
In 2026, that means:
- Focusing on WA’s key industrial corridors
We focus on the northern, southern, and eastern belts, where vacancies are tightest, and our expertise is strongest: Neerabup, Muchea, Malaga, Wangara, Wattleup, Cockburn, Kwinana, Hope Valley/Naval Base, Bassendean, Bayswater, Midvale, Hazelmere, and Kewdale. - Turning market conditions into site and building strategy
We leverage data on vacancy, land values, rents, and demand to guide every aspect of project planning, from access and circulation to building footprint, crane allowance, power, and staging. - Designing hard-working, flexible industrial facilities
Our commercial builders focus on designing practical, adaptable buildings that are suited for today’s operations and tomorrow’s growth, encompassing vehicle movement, racking layouts, heavy equipment, wash bays, and future expansion. - Embedding efficiency and ESG from the outset
We integrate energy use, solar readiness, service efficiency, and staff amenity into the core project brief, not as an afterthought. - Programming around real-world constraints
We plan around labour, supply, approvals, and financing realities, helping clients prioritise what must be delivered immediately and what can be staged for later delivery.
Perth’s industrial market won’t be the easiest in 2026, but it rewards well-located, well-designed, and well-planned assets. That is the standard Built Ink, and our experienced commercial construction companies are committed to delivering this year.
