Perth's office market in 2023 experienced a gradual resurgence in occupancy, driven by evolving work models and a growing focus on employee well-being and productivity.  

This trend aligns with a broader movement across Australia where businesses increasingly prioritise A-grade and premium office spaces which not only serve their functional purpose but also positively contribute to employee well-being.  

However, the financial landscape of 2023, shaped by global post-pandemic changes, posed its fair share of challenges.  

Perth's real estate sector grappled with increased borrowing costs and yield escalations, further complicating investment decisions and property prices. 

While buyers are looking for more value in their investments, mindful of the uncertain economic climate, sellers are aiming to capitalise on the sector's robust performance by seeking higher returns. 

“These financial challenges have necessitated a more strategic approach to real estate investment and development,” says Brent Griffiths, director of office sales and leasing at Realmark Commercial. 

“It’s about balancing the current economic realities with the long-term benefits of investing in quality office spaces.” 

As we look ahead to 2024, the transformation of office spaces will require businesses to adapt strategically. 

“We expect a strong focus on encouraging staff to return to office settings, with many larger corporations likely to continue with hybrid work models,” said Mr Griffiths. 

“The future of Perth's office market will be heavily influenced by how businesses adapt to these hybrid models, impacting both the design and location of office spaces.” 

The owner-occupier sector has also seen a notable shift this year, as rising construction costs and low vacancy rates make purchasing office space a more viable option for businesses, especially when faced with the alternative of much higher rents and less incentives.  

This shift is expected to bring stability to the market as businesses consider long-term property investments. 

“These emerging trends provide a roadmap for stakeholders in the industry. Making informed decisions in the year ahead will be crucial for navigating the evolving office market in Perth.” 

Our team is well-versed in the market and can offer tailored solutions to meet your specific needs.

To speak to Mr Griffiths, contact Realmark Commercial on 9328 0999. 

Disclaimer: This information is general in nature. Realmark does not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.