Hesperia Boosts Industrial Presence Despite Western Australia’s Tight Market

Hazelmere Interchange, development sites

The demand for industrial property in Western Australia shows no signs of slowing, with limited supply driving intense market interest. In response to the critical shortage of industrial land, recent planning reforms by the Environmental Protection Authority (EPA) and the WA Government have been praised by industry leaders for unlocking essential supply and streamlining development processes. Key changes include simplified procedures, new development pathways, enhanced digital tools, and improved decision-making through dedicated Development Assessment Panels.

Recent data from CBRE reveals an average vacancy rate of just 1.5%*, underscoring the urgent need for new supply. These reforms aim to alleviate market pressures and facilitate the timely release of new industrial sites.

“These planning and EPA reforms are a welcome step toward addressing the severe land shortage,” said Judd Dyer, Director at Hesperia. “The changes will provide the industry with a clearer path to developing new projects, meeting the needs of businesses, and supporting economic growth.”

Hesperia has proactively acquired and developed new sites in response to market conditions, focusing on strategic locations to support high-growth industries. The company’s recent development approvals through FY25 are expected to deliver over 314,000sqm of new industrial land by FY27.

At Hazelmere Interchange, Hesperia has secured agreements with five major tenants ahead of construction, scheduled for early 2025. CEVA will occupy a 78,000sqm site among these tenants, while Weir Minerals and Lindsay Transport will share 68,000sqm. Polyaire and Toll Healthcare will also establish operations across 24,000sqm at 189 and 190 Stirling Crescent.

In 2025, Hesperia will launch Stage Two of Konnex Industrial Park in Kenwick. Stage One has secured a pre-commitment through a successful off-market campaign for a tailored warehouse space across 140,000sqm, offering connectivity to key arterial road networks, Kenwick Rail Freight Facility and Perth Airport.

“Our focus remains on strategic growth, sustainability and delivering high quality facilities for our tenants,” added Judd Dyer. “We are committed to working alongside government and industry partners to develop resilient, well-located industrial hubs that support WA’s economic future. This expansion will enhance our ability to meet increasing demand from diverse occupiers, from logistics and warehousing to advanced manufacturing.”

Looking to the future, Judd said that Hesperia remains committed to partnering with government bodies and stakeholders to support ongoing reforms.

“By unlocking strategic industrial land, we can continue to build resilient, sustainable, and well-located industrial hubs that drive economic growth and meet the needs of our clients and WA’s growth.”

“The reforms are a positive first step, but sustained efforts will be required to ensure the availability of industrial land in the longer term.”

Hesperia remains dedicated to creating places of enduring value, integrating the highest environmental sustainability standards while helping tenants achieve their operational objectives. Explore our portfolio here: https://hesperia.com.au/places_category/industrial/

*Pre-liminary December 2024 Vacancy Survey by CBRE WA Research