Western Australia continues to lead the nation economically. In recent years, WA’s domestic economy has grown more than any other mainland state, with strong business investment, household consumption, governmental infrastructure and industrial spending.
When businesses feel growth is sustainable, they plan expansions. That creates real demand for new commercial buildings. This economic strength provides confidence for developers and investors to keep funding commercial projects. It’s an amazing cycle, that if maintained, can offer great benefits to Perth and surrounding areas.
Population growth, migration & demand for infrastructure
WA and the Perth metro area has experienced significant population growth. More people ae moving into the state, both from other parts of Australia and overseas, meaning an increased demand for housing, services, amenities and with it, commercial infrastructure.
When the population rises, developers and the government need to respond by expanding infrastructure. This includes retail centres, warehouses, logistics hubs, office spaces, childcare centres and community services. This demand is a big driving factor the commercial construction industry.
Industrial, logistics & commercial demand
There’s growing demand for industrial and logistic facilities, especially with WA’s strategic position for exports and its role in mining and supply chain.
In many industrial precincts around Perth supply is tight with existing warehouses or industrial zones at or near full capacity. This scarcity is pushing developers to build more. These are often speculative, or pre-commitment builds with the goal of meeting demand for space for storage, distribution, manufacturing, or logistics.
Government & infrastructure investment driving growth
Part of the boom is being driven by large-scale infrastructure and government investment. Government spending on transport, economic infrastructure, manufacturing incentives, and other public works has created a ripple effect across sectors.
Public investment tends to support and require private commercial builds. The synergy between public infrastructure spending and private development helps fuel sustained construction activity.
Commercial construction benefits the local economy
With so many projects underway, from warehouses, offices and mixed-use developments. it is doing wonders for the local economy. It creates jobs, stimulates local trades, and supports supply-chain and service sectors.
Yet, at the opposite end of all this growth has come a new issue in the form of labour shortages and rising construction costs. In previous years rising costs tightened the industry, but in 2025 labour shortages have been the issue. Some builders are struggling to finish projects on time due to not enough trades.
With these challenges, it’s only the most skilled, organized and seasoned commercial construction firm that will successfully deliver quality commercial builds on time and within budget.
What does this mean for the foreseeable future
- Demand for industrial, warehouse, logistics and commercial space in WA is likely to stay high, given population and economic growth.
- Developers and investors may increasingly look to build speculative commercial developments to catch rising demand, which can be risky
- Builders with experience in commercial construction have a chance to capture significant work.
- Labour shortages, material cost pressures, and supply-chain challenges need to be tightly managed to deliver projects on time