Global Tensions Reshape Perth's Office Market—What Businesses Must Know

Perth's commercial property market has long thrived on stability and predictability, but the global backdrop has shifted dramatically. From trade tensions between major economies to regional conflicts disrupting supply chains, the ripple effects are already visible on St Georges Terrace and throughout the CBD's premium office precinct.

Recent data reveals the pressure. Vacancy rates in Perth's Class A office space have climbed to 8.2 per cent, up from 6.9 per cent a year ago, according to commercial real estate analysts tracking the market. Average asking rents in the core business district have plateaued at $385 per square metre annually—a stagnation that would have been unthinkable during Perth's sustained growth phase.

The causes are international in nature. Major multinational corporations with Perth operations—particularly in resources, finance, and professional services—are recalibrating their real estate strategies in response to global uncertainty. Some are consolidating office footprints as remote work becomes more entrenched. Others are delaying expansion decisions pending clarity on trade policy and geopolitical stability. When global markets seize up, even a diversified economy like Perth's feels the tremors.

The knock-on effects are visible across precincts. Landlords in emerging office zones like East Perth and the evolving Northbridge precinct are offering longer lease incentives and fit-out contributions to secure tenancies. Meanwhile, established addresses on Hay Street maintain their premium positioning, though new leasing activity has slowed considerably.

"Companies are in wait-and-see mode," explains the commercial property sector, with many multinational employers deferring decisions about headcount and workspace requirements. Financial services firms, which have historically anchored Perth's office market, are among the most cautious—a direct reflection of volatile global markets and uncertain regulatory environments.

However, Perth's fundamentals remain relatively intact. Population growth continues, local government and professional services demand persists, and the resources sector, while cyclical, still underpins significant business activity. The question isn't whether Perth's commercial property market will recover, but rather when confidence in the global environment returns enough for major tenants to commit capital again.

Smart landlords and investors are preparing now. Properties offering flexibility, modern sustainability credentials, and collaborative amenities are proving more resilient than traditional office stock. For Perth business leaders, the message is clear: global headwinds are real, but local adaptation and strategic positioning matter more than ever.

This article was compiled by AI and screened before publishing. See our editorial standards.