Author: Ross Scarfone Real Estate (page 1 of 5)

2022 Financial Year Commercial Property Update and Looking Ahead

As we leave the 2021-22 Financial Year behind, commercial property owners will be scrambling their documentation to lodge their tax return and begin planning the year ahead. It’s been a tough and uncertain year for many Perth businesses as we manoeuvred the pandemic following the border opening – but there is hope on the horizon.

In this article, we share a brief summary of the financial year we’ve left behind and explore the possible outlook for the year ahead.

Financial Year 2021-22 Overview

Now the Financial Year has ended, we look back at what was a strong year for commercial real estate, despite the fluctuating waves of COVID-19. Since the state border opening in early March this year, it seems most businesses have adapted their protocols to make working with or working around the pandemic, more effective. For many workplaces, this included adopting a more flexible work schedule and working from home.

Meanwhile, construction of new commercial and industrial assets in Perth has nosedived given the severe supply shortages and rising material costs.  Construction of these buildings is one of the fastest declining industries in Australia according to IBISWorld. It’s not all bad news however, as investors are forced to acquire existing buildings, resulting in a very low commercial building vacancy rate.

Within the CBD, office vacancy rates have reached their lowest level in seven years, dipping to 15%, according to the Property Council of Australia. They also noted in their most recent report that sub-lease vacancy rates declined to a 10-year low of 0.9%, and office vacancy rates in West Perth reduced by 4.1% in the last year.

During the 2021-22 Financial Year, Perth commercial property investors were often fraught with uncertainty with rumours of rising interest rates, but interest rates still remain low overall. More notably, many investors would have experienced a positive cashflow with higher rental yields. The pandemic has helped identify which business models are more resilient and flexible, making it easier to find a long-term tenant who fits this criterion.

Outlook for 2022-23 Financial Year

Looking forward to the 2022-23 Financial Year, many of the trends noted in 2021-22 are likely to continue in one way or another. The most notable change may be the rising interest rates, which is likely to cause a faster rental growth figure. However, these interest rates are still substantially low compared to the last decade.

Unfortunately, building costs don’t appear to be recovering anytime soon, further enforcing a strong period of rental and capital growth.

Elsewhere, the industrial property sector remains the best positioned of the three main commercial sub-sections, with logistics and warehousing in high demand. Other essential services such as cold storage, online retail, and delivery services are going from strength to strength, promoting massive investor demand. In fact, Australia’s industrial property market is the ‘tightest in the world’ according to recent research from CBRE. Nationwide, industrial properties such as warehouses have a vacancy rate of just 0.8%, proving the huge demand for this market. This demand extends to B and C-Grade older industrial properties too, which are continuing to sell fast and for a premium.

On the other hand, the retail sector is experiencing an ongoing, slow recovery from the devastating effects of the pandemic. Hotel investment is following a similar route after falling behind in 2021.

Overall, the outlook for commercial real estate investments in the 2022-23 Financial Year and beyond is largely positive when compared to residential property investments. Some experts are predicting the strong industrial demand to continue for up to another 5 years. The federal budget adds fuel to these predictions with its pledge of $18 billion to go towards infrastructure nationwide.

For WA, we can hope that COVID-19 case numbers will fall, encouraging more businesses to come out of hibernation, further strengthening office vacancy and occupancy rates. The more activity we see, the more demand for well-positioned commercial property.

Looking to Buy, Sell, or Lease a Perth Commercial Property?

At Ross Scarfone Real Estate, we can assist you with all aspects of Perth commercial and industrial property sales, leasing, property management, and more. Our experience in the South-eastern Corridor of Perth is rivalled by few, meaning you receive the best service, no matter the ask.

Contact us today for sales enquiries, or for help managing your property in the new Financial Year.

What is Commercial Property Management and Do You Need It?

Owning a commercial property in Perth is a lot of work, which is why many property owners rely on commercial property management companies to oversee their property.

But what does commercial property management involve, and is it right for you and your property?

What is commercial property management

Commercial property management is the process of maintaining a commercial property such as an office, warehouse, or retail outlet. A commercial property manager will ensure the property is kept in good condition and continues to produce income through operations and lease payments.

Roles and responsibilities

The main responsibilities of a commercial property manager in Perth revolve around financial services and managing operations, which we have summarised below.

Operations management

A lot of time and effort goes into ensuring a property can function efficiently and provide the best return. Some of the key tasks in managing the operations of a commercial property in Perth include:

  • Ensuring a property or unit is occupied.
  • Advertising any vacancies and reference-checking applicants.
  • Managing tenant issues and taking feedback or enquiries.
  • Carrying out evictions if needed.
  • Periodic inspections of a property to identify maintenance opportunities.
  • Ensuring infrastructure is in working order.
  • Responding to emergencies at the site.

Financial services

Commercial properties often see a large amount of income and outgoings in various forms.

To keep track of it all, property management companies will provide accounting and financial services to assist the property owner come tax time.

These services include the following:

  • Collecting rent payments and deposits, plus creating and updating records.
  • Following-up late payments from tenants.
  • Financial reporting covering expenses and capital expenditure.
  • Bank reconciliations
  • Tenant delinquencies.
  • Planning a budget for operations.

Do you need a commercial property manager?

Property management is invaluable to a busy property owner who doesn’t have the time or resources to regularly attend to their property. If you’re an investor, property management services will help to maximise the return on your investment.

This is especially useful in large Perth commercial strata sites where the property is shared amongst multiple tenants. Commercial strata management includes gathering rent and attending to a variety of needs from numerous companies sharing the same facilities.

Property management is also useful if you’re an investor and don’t live near your property, or you don’t have the knowledge to improve the property on your own.

In fact, if you aren’t experienced in the aforementioned tasks or despise dealing with the financial side of things, a commercial property management company will be your saving grace.

Property management fees are part of outgoings payable by the Tenant as well as:

  • Land tax
  • Water rates
  • Council rates
  • Insurance
  • Strata Levies (if applicable)

What to look for in commercial property management companies

To identify the best commercial property management company for your property, there are a few important factors to consider:

  • Experience – The more industry knowledge a company has, the better the commercial property management services they provide.
  • Certifications – Ensure you find a verified company with all the required certifications.
  • References – Look for evidence of positive client testimonials as these showcase the reputation of a company.
  • Track record – Find a company with a good track record of success and compliance with WA laws.

Commercial property management in Perth?

At Ross Scarfone Real Estate, we specialise in commercial and industrial real estate throughout the South-eastern corridor of Perth. Not only do we provide exceptional property management services, but we can also help you with property sales and investment opportunities.

We provide our clients with top-quality service in an ethical and professional manner, which brings a lot of repeat business and client referrals.

If you’re looking for a commercial property management company in Perth, contact us today.

Finding a Commercial Property Investment in Perth

If you’re in the market for a commercial real estate investment in Perth, there is much to consider. You want to choose the right property type, in the right location, and at a time that will provide you the best possible return.

In this article, we outline some key factors to help guide your search for a commercial property investment in Perth.

Why a commercial property investment?

Property investors in Perth can generate a profit by allowing tenants to lease their commercial space. Compared to other property investments such as residential, commercial generally offers a higher cash flow and therefore greater yields.

Another benefit is that commercial tenants are usually more responsible as they have a reputation to withhold. Plus, the lifespan of a lease can be negotiated to last in excess of 5-10 years in some cases. These advantages of commercial investments are what make them more secure than a residential investment, from an investors point of view.

For more differences between residential and commercial investments, see this article.

Commercial Property Types

Perth is home to a wide range of commercial property styles, each with varying operational needs.

Office – An office space is the backbone of almost every business structure. Depending on the industry and needs of the business, an office may be located deep in the heart of the CBD, or in a more suburban area.

When investing in an office, location plays a leading role. Most tenants will want an office in close proximity to transport routes, and in an area where employees will enjoy the surroundings. Consider nearby dining facilities and natural open spaces for hours outside of work and unlike other industries, most businesses prefer an office near companies with similar interests.

Industrial – Investments in industrial properties can range from a small distribution centre to a large manufacturing site with major logistics and heavy machinery. Industrial properties often feature very different structural facilities like warehouses, storage yards, offices, and wide loading bays.

Like a standalone office, tenants will want an industrial property located near food outlets and sufficient transport routes, especially if they require access from heavy trucks. Other crucial amenities include a kitchen/dining area, bathrooms, and office space.

Retail – A retail property may be a streetside shopfront or a shopping centre with many tenants. These sites should be optimised for as much foot traffic as possible, and often require back-of-house access for deliveries.

The property will fetch a higher rental yield if it presents opportunities for advertising using existing signage or is naturally in a highly visible position. If the retail site is a centre with multiple units, the property should cater to a variety of tenants and provide some common areas that can be utilised by all – such as bathrooms.

Additionally, a multi-functional facility would be ideal if it has room to expand as the variety of retail outlets will attract a wide range of consumers.

Mixed Use – A mixed-use commercial property is like a retail shopping centre whereby it is home to multiple tenants. A commercial strata property might take the shape of an office complex or shared warehouse and needs the communal facilities to satisfy all parties.

Much like other commercial properties, a strata property management system is the best way to ensure all tenants requirements are met.

Speciality – ACommercial properties may be suited to a unique business offering. Examples are service stations, cinemas, hotels, childcare centres, and pubs.

More often than not, these tenants want a location with limited competitors in the area. If this is on offer, companies will be willing to negotiate a higher lease.

Where to look?

In Perth, commercial properties are located in virtually every suburb. For retailers and specialised commercial properties, a location in a highly populated area, away from competitors is the ideal place to set up shop. See our list of commercial properties for sale in Perth.

For the bigger industrial facilities, there are restrictions ensuring they are grouped in designated industrial zones. For a breakdown of these locations, see this Guide for Industrial Real Estate.

When should you invest in commercial property?

With the WA borders now open, the commercial property market is a hotbed for investor activity. According to Domain, the vacancy rate for commercial sites is “historically lower compared to previous years”, meaning property investors are receiving a greater return from their tenants.

In other words, now is a great time to secure a commercial property for sale.

If you are looking to buy or sell a commercial property in Perth’s South_East Corridor, Ross Scarfone Real Estate are the professionals to call upon.

Our vast experience means we have the industry knowledge and excellent service to assist you in making a great return. See some of our commercial properties for sale, or get in touch for an appraisal of your current property.

Perth Warehouses: What’s available? And how do you buy or sell?

Normally imagined as a large storage space, warehouses are a fundamental structure used to maintain many business operations and therefore, provide the groundwork for a prosperous economy.

In Perth, a commercial or industrial warehouse can entail a lot more services beyond merely storing products. For some business owners, their warehouse is the source of all their operations, including production, logistics, storage, and distribution. The functional offering of a warehouse is often the most important aspect when buying or selling a warehouse property.

This article breaks down the key differences between various warehouse forms and functions and shares the considerations to make when looking to buy, sell or lease a warehouse in Perth. For more specific considerations when buying a warehouse, see this article titled ‘Commercial Warehouses For Sale: Top Considerations’.


Private –

Private warehousing is the most common status of a site in Perth as it describes the warehouses owned and operated solely by one business for its own storage and distribution activities. A private warehouse may provide a specific function or a wide variety of functions to the owner, as we describe in more detail below.

Public –

A public warehouse is owned by an independent company and space is then leased out to one or multiple businesses. Often this is an attractive prospect for a retailer whose products or services are a seasonal provision, meaning their occupation of the warehouse space is on a short-term basis.


The stereotypical storage function of a warehouse is undoubtedly important; however, many warehouses in Perth require more functional attributes to achieve their purpose. Here we explore some of the most common warehouse functions.

Distribution – Commonly referred to as a distribution centre or DC, this warehouse is used to store incoming products for a limited time before they’re separated and transported out to vendors or outlets where the products will be on sale. A warehouse used for distribution has a large volume of inbound and outbound deliveries so being in a prime location with efficient transport avenues is pivotal to success.

Production – A warehouse with the purpose of manufacturing a product would be referred to as a factory, but in some instances, a warehouse is needed to hold raw materials within a manufacturing or production site. This warehouse isn’t involved with business-to-business (B2B) or business-to-consumer (B2C) affairs, rather, it manages the demand for materials, or semi-finished goods that are awaiting further use at the site. The benefit of this is to ensure production isn’t delayed or halted due to material shortages.

Pick, Pack, Ship – The process of picking, packing, and shipping, is often utilised within ecommerce vendors. A warehouse would hold the stock until an order is received online or from a brick-and-mortar store, before proceeding to collect the ordered items. From there, the items are packed, labelled, and delivered direct to the customers location.

In some large-scale operations, this process may be automated within a ‘smart’ warehouse. This can be beneficial as it reduces administration and the risk of mistakes or accidents which may arise if undertaken by a manual workforce.

Temperature and climate-controlled – A temperature-controlled warehouse will store goods at a specific temperature, particularly useful for perishable, refrigerated products. Most warehouses in Perth would have a temperature-control function given the extreme heat, but for companies with sensitive products, this function needs to be more extreme.

Climate-controlled storage warehouses take temperature control to another degree, where they may be required to maintain airflow and humidity levels as well. Some highly sensitive products such as some fabrics, wood, expensive paintings, and electronics, may have an increased risk of growing mould or being damaged by water vapour. A climate-controlled facility should be equipped with heavy-duty HVAC systems, specialised insulation, and dehumidifiers to achieve the perfect air and climate quality.

Bonded – A bonded warehouse or customs warehouse is a facility which can store imported goods without the need to pay an expensive import duty. In some cases, products can be sold directly from the warehouse and the duty is applied on the proceeds of the sale.

On-Demand – As aforementioned, this public warehouse is a space where lots can be rented for a short-term or for a seasonal product offering. This is great for companies who don’t require a permanent warehouse space.


If you’re ready to sell a warehouse in Perth, it’s important to understand the primary and secondary purpose of the property. As you now know, there are multiple functions that may categorise your warehouse a step further than just storage. Knowing the key functions can help you identify a likely buyer and advertise in a way that will target this audience.

Another thing to be wary of in Perth is ‘zoning’. Across the city, all land has a specified zone, usually categorised as either residential, industrial, commercial, or agricultural. This may limit the selling options if your warehouse is in a specific zone.

Selling a commercial or industrial property, such as a warehouse, can be a daunting task. There are many aspects of a property that can be easily improved or removed to maximise the value of the site.

At Ross Scarfone Real Estate, we have the experience to know what makes a property standout. For over 30 years we have been selling and leasing warehouses across Perth, at the best possible sale price.

If you need some expert advice or assistance in selling a warehouse or commercial property in Perth, reach out to the team today and see what we can do for you.

Buying or Leasing

When buying a warehouse in Perth, it’s important to understand what your business needs beyond just storage. The location, transport access, environmental control needs, security, and room to expand are considerations that should be front of mind.

The team at Ross Scarfone Real Estate has extensive knowledge of the Perth property market and can help you and your business make an informed decision that best suits your needs.

See the current properties for sale or for lease, otherwise contact us to discuss your property aspirations.

Perth Commercial Property Outlook 2022

After the initial hit to commercial and industrial property during the early phase of the COVID-19 pandemic, Western Australia’s economy has finally started to recover and looks set for a strong 2022. With a low unemployment rate and increasing household disposable income, Perth is tipped for a busy year in the commercial property industry.

The year of 2022 could be the ideal time to both buy and sell commercial property, especially considering last year’s sales:

  • Almost $40 million in $20 million plus sales were recorded in sales for 2021, according to m3property research.
  • $15 billion was recorded across office transactions, 60% higher than last year.
  • Retail witnessed 214% growth taking the sales value to $11.5 billion.
  • $13 billion for industrial sales, representing a 49% increase.

It is expected the sector will see even further growth than it did in 2021, which exceeded pre-pandemic levels.

With WA’s economy and unemployment rate (3.4% compared to the national average of 4.2%), it’s a great time for the commercial property market.

With investors and buyers expected to want to expand their portfolios to WA when the borders reopen, this year is the time to think about acting now in securing a commercial property.

Hot Commercial Real Estate Suburbs in 2022

Looking to buy your next investment property or commercial space, you want to be aware of the supply and demand of property in the suburb or area of interest.

With Ross Scarfone specialising in outer-suburban commercial and industrial properties in Perth’s South East, the suburbs continuing to see good demand are Welshpool and Kewdale.

For smaller properties in the surrounding areas, Carlisle, East Victoria Park, and Cannington are, too, continuing to see demand.

In 2022, we are expecting Burswood and Belmont to join the others in becoming in demand suburbs too.

Most of these suburbs are accessible to Perth airport, freight rail line, and major freeways.

The Office

In the last year, demand for offices has declined due to the face of work changing due to COVID-19 in Australia making vacancy rates high.

However, this year there is expected to be an office market rebound, and those looking to purchase a commercial office space have the opportunity to increase the value during this time of the Pandemic.

With Perth office vacancy rates decreasing to 16.8% at the end of 2021, experts see this as a vote of confidence.

Properties able to give larger office spaces to workers will be preferred as they can accommodate flexible work practices and respect social distancing measures.

Those looking to invest in a commercial office space must think of renovations and space in order to keep up with health and safety measures. There’ll be an increase in demand for spaces who make these changes.

As for industrial spaces, research found the sector thrived due to a boom in online retailing, and this is only expected to grow.

Great Time to Invest in an Industrial Property

This year is backed to see investors returning and expanding their Perth properties, especially with borders expecting to reopen sometime in 2022.

With WA having a strong economy, low unemployment rate, and high investor interest, it’s a great time to invest in commercial properties and act soon.

For a detailed breakdown of the Perth commercial real estate market or specific advice on warehouses for sale in Perth, call or email Ross Scarfone Real Estate.

Paul Scarfone – Top Commercial Leasing Agent WA Finalist

The Annual REA Excellence Awards (AREAs) have recently announced the state finalists for the 2021 edition of the Awards. Off the back of a very successful year of outstanding achievements, we would like to congratulate our very own Paul Scarfone, who has been nominated for the title of Top Commercial Leasing Agent WA.

This award recognises the best commercial leasing agents in each state by comparing REA data on campaign results throughout 2021. The announcement comes off the back of Paul’s big win at the REIWA Awards Ball in August last year. He was awarded Top Salesperson by Commercial Listings Sold for the 2021-21 financial year, in what was the events first ever inclusion of the Commercial Sales Awards.

Western Australia had a strong year in the property market as demand and prices grew following the downturn in 2020. Both local and interstate buyers have been in the market for prime commercial property across Perth and beyond, which has allowed Paul and the other agents at Ross Scarfone Real Estate to provide specialist insight and opportunities to buyers and sellers alike.

The skills and experience of the team in the commercial real estate sector provide a wealth of knowledge to the many current and existing clients of the company. The awards received, and the recent nomination are a testament to the hard-work and expertise of everyone involved at Ross Scarfone.

From everyone at Ross Scarfone Real Estate, we congratulate Paul and wish him the best of luck with receiving the award.

Industrial & Commercial Leasing Agents

At Ross Scarfone Real Estate, we provide excellent service to our clients in a professional and ethical way. If you’re looking to buy, sell or lease a commercial or industrial property, get in touch with the team today with this Contact Form.

8 Tips to Increase Your Commercial Property Value

Making your commercial property in Perth more attractive to buyers is a great way to increase its value, benefitting both the buyer and you. Whether that be improving the exterior, adding amenities, or changing leasing companies, these are a few tips which could help you out.

  1. Increasing rentable square footage

A simple way to do this is determining the usability of the space both horizontally and vertically, and advertising this to your potential buyers. Check if there are any structural blockades preventing the use of productive space and make the removals or additions. Smart fit outs like walls and partitioning, line marking, and shelving and storage are just a few ways to do this. In the long term, spending the money on such changes will increase your commercial property value.

  1. Increasing parking space

Not only will adding spaces to park increase the accessibility of the property for customers, but it will also add value to the commercial property. Potential Perth buyers will see the benefit of such accessibility in helping their production and satisfying their customers, leaving you with the added value to your commercial property.

  1. Improving exterior

Upkeep is essential as the whole look and presentation of a building can either decrease or increase the value of a commercial property. Repairing any defects to the exterior, like plastering, or an easy and simple paint job is a means of taking up the property value a long way. Buyers will be more interested in a visually appealing and well kept Perth property, and so will their customers.

  1. Upgrading signage

Exterior signage of your commercial property is essential for both the presentation of the building and also marketing purposes. A visible, clean, maintained sign is vital for the buyer of your commercial property and is a great way to increase your commercial property value in Perth. The same as improving the exterior, it’s a way to keep buyers interested as they look to what will attract and be recognizable to their customers.

  1. Cleanliness

Providing a clean commercial property building and ground is the easiest and most simple way of increasing value. Giving a buyer a blank canvas is a great way for them to be able to imagine how they can use the space. Mopping, deep cleaning carpets, and getting the windows cleaned, are some of the ways you could present a ‘new’ space to a prospective buyer.

  1. Addition of amenities

If possible, adding amenities to your commercial property can undoubtedly increase the value. Conference rooms, a coffee bar, or office spaces allow buyers to envisage their business and its people working and operating in the space. By adding such amenities, your commercial property puts more on offer for the potential buyer, meaning more interest and value.

  1. Regular inspections

Perhaps a hassle, but it is essential to regularly inspect your commercial property when taken over by a business. This allows you to check up on your Perth property and to see whether you should make any changes, like the ones listed above, or fix any structural issues if necessary.

  1. Change lease companies

A new pair of eyes can greatly benefit your commercial property. With fresh advice from another industry professional, you may learn a new thing or two and heighten the value of your commercial Perth property. Ross Scarfone realtors can be the fresh face and perspective that you’re looking for to make your commercial property the most appealing.

With extensive experience and knowledge of real-estate in Perth’s Southeast region, Ross Scarfone Real Estate have been helping businesses for over 30 years. Leasing commercial real estate, including brand new, old, and converted warehouses, the team provides a personalized, professional service.

« Older posts