Category: Warehouse

Perth’s Industrial Areas: A Guide for Industrial Real Estate

Perth’s light industrial areas are strategically placed throughout the Perth metro to allow businesses to set up their locations near arterial roads that can carry trucks and heavy machinery. In most cases, this means being on the fringe of inner Perth to allow vehicles to quickly get on freeways that will take them to other areas of the state or freight hubs like Fremantle Port, Perth Airport or freight rail terminals.

If you’re looking for a warehouse, factory, workshop, distribution facility, read this quick guide to Perth’s industrial areas.

We’ve split Perth into four quadrants to take a quick look at which suburbs have the most industrial properties to lease and what each location has to offer if you’re looking to distribute or receive goods.

South East Perth Industrial Area

South East Perth

Notable suburbs:

Belmont, Canning Vale, Forrestdale, Kewdale, Maddington & Welshpool

Main arterial roads:

The South East Perth industrial areas are serviced by Roe Highway, Canning Highway and Leach Highway connecting to Kwinana Freeway heading south. Eastern routes Brookton Highway and Albany Highway carry traffic heading to the south-east areas of WA with Great Eastern Highway heading northeast.

What is it near?

  • Perth Airport
  • Rail freight terminals
  • East and Southeast highways
  • Belmont, South Perth and Victoria Park are minutes from Perth CBD

North West Perth Industrial Area

North West Perth

Notable suburbs:

Balcatta, Joondalup, Landsdale, Wangara & Yanchep

Main arterial roads:

The North West Perth industrial areas are serviced by Mitchell Freeway and Wanneroo Road allowing heavy vehicles north and south, with access to the airport via Tonkin Highway and Fremantle by West Coast Highway.

What is it near?

  • Northern highways
  • Joondalup CBD

North East Perth Industrial Area

North East Perth

Notable suburbs:

Bassendean, Bayswater, Bellevue, Malaga, Midvale, Morley & Osborne Park

Main arterial roads:

The North East Perth industrial areas are serviced by Roe Highway carrying vehicles south to Fremantle Ports and Perth Airport. Eastern routes Great Eastern Highway, Toodyay Road and Kalamunda Road provide access to the Perth Hills and beyond.

What is it near?

  • Perth Airport
  • East and Northeast highways

South West Perth Industrial Area

South West Perth

Notable suburbs:

Bibra Lake, Cockburn Central, Jandakot, Naval Base, O’Connor, Port Kennedy & Rockingham

Main arterial roads:

The South West Perth industrial areas are serviced by Kwinana Freeway, Stock Road and Rockingham Road running north and south, with Cockburn Road, Leach Highway and South Street providing access to Fremantle Port.

What is it near?

  • Fremantle Port
  • South highways

If you’re looking for an industrial or commercial property to lease in Perth, speak with the local experts that have been helping businesses find properties to help their company thrive.

Ross Scarfone Real Estate has been leasing commercial real estate for over 30 years and has a reputation for excellent service in an ethical and professional manner.

Perth’s 2020 Commercial Property Report: Warehouse

Last month REIWA released their quarterly Perth commercial property market report that revealed the sales statistics of all the commercial properties sold in Perth during the 12 months to September 2019.

We’ve focused on the commercial report on warehouse sales in Perth to analyse what the industrial property market has done in the 12 month period and what you might expect for commercial property sales for 2020.

Perth Commercial Property Sales

While certain Perth commercial property types had an increase sales in the year to the September 2019 quarter, showrooms had a 30.9% growth in demand and offices an 8.5% growth, warehouses for sale continued to feel the effects of the WA’s flat market.

Perth Warehouse Sales

Compared to the 12 months to September 2018, the September 2019 report showed a 12.9% decrease in warehouse sales and a 14% decrease from 5 years ago.

Perth Warehouse Sales by Region

When we looked at where the warehouse sales were coming from in Perth, there were three standout regions: North West – 60 sales, South West – 69 sales and South East – 67 sales.

What’s even more interesting is that both the South East and South West regions outperformed the previous year’s warehouse sales. Where the rest of Perth saw fewer warehouse sales than the previous year.

The South East Perth region was the only area to record higher warehouse sales than 2017, and in fact recorded its highest warehouse sales since 2011, showing promising signs for the area that includes Belmont, Welshpool, Kewdale and Victoria Park.

warehouse-for-sale-perth-by-region-2020

What are Perth Warehouses Costing per Square Metre?

Of Perth’s warehouse sale regions, Inner Perth continues to be the highest cost per square metre at $4,969, growing 9.4% in the last 5 years.

When we looked at the historical data for cost per square metre, we could see that two areas retuned to the higher prices that were seen in 2015, while the remainder continued to see the effects of the slow Perth market.

 Change from 2015Change from 2018Avg in 2019
Perth – Inner+9.4%+20.9%$4,969
Perth – North East-20.4%-7.4%$1,638
Perth – North West-11.6%-3.0%$1,822
Perth – South East-11.4%+1.9%$1,792
Perth – South West+0.5%+2.0%$1,792
Mandurah-14.6%+72.1%$1,914
Greater Perth-9.7%+0.1%$1,835
Cost per Square Metre

Top 5 Suburbs in Perth for Warehouses for Sale

Two of Perth’s North East suburbs topped the list for most warehouses sold in Perth, Wangara and Malaga, contributing 72% of warehouse sales for Perth’s North East region. With North West suburb O’Connor recording 21 warehouse sales, and South East suburbs Canning Vale and Forrestdale combining for 35 warehouse sales.

 SalesPer cent of total sales
Wangara2812%
Malaga229%
O’Connor219%
Canning Vale219%
Forrestdale146%

Summary of Perth Warehouse Sales by Region

perth-warehouse-sales-by-region

If you’re looking for to invest in buying a warehouse in Perth for 2020, here are our top takeaways from September 2019’s quarterly report on commercial property:

  • Warehouses in Perth’s inner continued to increase their value during a tumultuous 5 years of Perth’s commercial property market, increasing cost per square meter by 9.4% compared to the average Perth decline of 9.7%.
  • The South East is showing the strongest signs of recovering from Perth’s slow market by selling the greatest number of warehouses since 2011.
  • The most affordable Perth regions to buy a warehouse are Perth’s North East and South East, with the lowest cost per square metre.

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. Our agents specialise in industrial and commercial real estate in Perth’s south-east corridor including Belmont, Welshpool, Kewdale, Victoria Park and surrounding areas.

Find The Perfect Warehouse to Lease With Tips From Commercial Property Experts

If you’re thinking about a new warehouse to lease in Perth, or anywhere, it can be an overwhelming task and unless you’re a commercial property expert, it’s easy to feel that you’re under-informed. All of this can lead you to make a poor decision on the warehouse you rent and it having a significant impact on how your business runs for the length of the lease.

Fear not! We’ve gathered some Perth commercial property experts to put together a list of easy to understand tips that will help you be better informed when looking at Perth warehouses to lease and put you in a better position to negotiate the price of your rent.

What To Do Before You Start Looking at a Warehouse to Rent

Plan Ahead…Far Ahead

Looking for a warehouse to rent just before you need one puts you under pressure to find one to lease and it puts you in a weaker negotiating position. The longer lead-in time you give yourself before you need to lease a warehouse, the better your negotiating position will be. You’ll be more informed of what properties are available and how the warehouses you’re considering compare to others that have been in the market.

Planning at least 6 months in advance will also give you enough time to better understand the requirements you have for your next warehouse rental. In this time, you’ll be able to speak to your managers to learn what they think the features of your next warehouse should be. For example, you may need extra loading bays, larger office space or more advanced safety requirements.

Keep an Eye on the Commercial Property Market

By monitoring the commercial real estate market in Perth, in particular warehouses to lease, you’ll give yourself the opportunity to jump on a deal if the market dips. This could end up saving you thousands of dollars in rent each year.

If you’re watching the warehouse lease listings of local commercial real estate agents, you’ll also be able to see which have been sitting on the market for the longest time. This could mean that the owners are eager to get the warehouse leased, giving you an opportunity to negotiate better terms.

Commercial Property Expert Tip #1:

The latest warehouses on the lease market will usually sit at the top of the major commercial real estate websites, but sometimes old listings will be advertised at the top of the list. To get the best understanding of which warehouses have been on the market the longest, head to the website of the commercial real estate agent to find their list of warehouses and head right to the back of the list.


Commercial Property Expert Tip #2:

Subscribe to the email mailing lists of the commercial real estate agents that lease warehouses in Perth. Commercial property agents will regularly send out emails and you’ll be the first to know when a new warehouse appears on the leasing market, and you can be the first to view it. Potentially meaning you won’t have any competition to lease the warehouse, and you will be able to negotiate better lease terms.

Know Your Limit

Before you even consider looking for a new warehouse to lease, you need to have a comprehensive understanding of what rent you can afford to pay. Once we see something we like, we all tend to push beyond our budget to get it. By setting a strict budget for what you can afford, you’ll reduce the risk of putting yourself in a risky financial position by overcommitting.

What to Look for in a Warehouse to Lease

Now that you’ve done your research and are prepared to start looking at warehouses to lease in Perth, here are a few tips from commercial property experts on what to look for.


Think More than Square Metres

When looking at a warehouse to lease, you not only need to think about square metres, you need to think about cubic metres. The cubic meterage of the warehouse will allow you to calculate how much storage space you have.

When considering a warehouse to rent, it’s important to look at the height of the building and whether your storage racks, equipment and machinery will fit. Make sure to measure the height of the access doors as well when looking at the height of the warehouse, you need to be able to get your equipment inside the warehouse.

If you’re not storing stock in the warehouse or have tall equipment, you may not need to lease a warehouse with a high ceiling and can focus on finding a renting a warehouse with lower ceilings.

Commercial Property Expert Tip #3:

If you know which warehouse features are, and aren’t, valuable to your business before you start negotiations, you may be able to lease the warehouse for a lower rent. For example, some businesses will need a warehouse with a high ceiling and will end up paying more for this feature, but if high ceilings aren’t as valuable to your business, you can negotiate down the premium placed on this feature. 


Commercial Property Expert Tip #4:

When it comes to warehouse space, it’s better to overestimate what you need, rather than underestimate. You don’t want to be looking to lease a new warehouse in a years’ time because you’ve expanded beyond the space.

Will You Need Office Space?

Most warehouses for lease come with a small office for a manager to oversee the staff, but if you’re looking to run your entire business from one location, you’ll need an office warehouse to rent. Once you decide you need extra office space in your next warehouse, there are a number of additional factors to consider.

How Much Office Space Will You Need?

You can roughly calculate the square metres you’ll need for your office, by adding up the number of employees you’ll have in the office as either a:

  • Standard desk/cubicle
  • Standard Office
  • Supervisor/Manager work area
  • Supervisor/Manager Office

You can download the exact calculations in our guide How to Choose an Office Space to Lease in Perth.

What Office Features Will You Need?

Here is a couple to consider:

  • Male and female toilets
  • Lunchroom
  • Server room
  • Boardroom or meeting space.
  • Printer and stationary storage.
  • Kitchen

Ask About Everything

You should know a warehouse, inside and out, before you even start negotiations. There are a number of things that you could assume are up to scratch only to find out later that it’s not! Here are a few warehouse features you should ask about with every property you view.

  • Air conditioning and heating: This needs to be able to deal with your staff and any machinery that might be generating heat. If you have stock that needs to be stored at a certain temperature, you need a climate control system you can rely on. Enquire about the age of the warehouse’s systems and when they were last serviced.
  • Safety and security: Your entire stock and machinery inventory could be stored in your warehouse, not to mention your staff. You need a security and safety system that will protect everything in your warehouse from fire and burglary.  

Commercial Property Expert Tip #5:

If you’re going to be running machinery in your warehouse, potentially all day, you want to know that the warehouse’s wiring has the electrical capacity to handle the workload.

What Are Your Distribution Needs?

The distribution of your products and intake of supplies is a major aspect of your business and you need to know that the warehouse you lease will be able to streamline your receiving and distribution as much as possible. Here’s what our expert suggest you keep in mind when looking for a new warehouse to rent:

  • Loading docks: If you need loading docks, make sure they will suit the types of trucks you’ll be using and the area around the loading dock is large enough for them to maneuverer.
  • Access to freeways: How far will your vehicles have to travel to access the major freeways that can take them both around Perth and interstate?

Commercial Property Expert Tip #6:

Be aware of the council restrictions on heavy vehicles around the warehouse. Certain residential zones prohibit trucks and industrial vehicles from travelling through them, meaning you and your suppliers may have to go around the entire area.  

Speak to a Commercial Property Expert

If after reading this article, you’re still not sure of what your warehouse requirements are or where to find the perfect warehouse to lease, speak to the local commercial real estate experts at Ross Scarfone Real Estate. We specialise in commercial and industrial buildings for lease in Perth’s south-east corridor of Belmont, Welshpool, Kewdale and surrounds. You can view our entire list of warehouses and office warehouses to lease and request a tour of the available warehouse properties in the area.