Retail real estate options in Western Australia are expected to be limited in the future with just 43,000sqm of new space being offered in Perth between now and 2026, according to CBRE’s latest WA Retail Market Overview.

This will come as good news for landlords and have a positive impact on rental growth in the medium term, given the historical average is 116,000sqm of new supply over a three-year period.

Western Australia’s retail market is anticipated to benefit from population growth of 13 per cent over the next 10 years driven by international and interstate migration, thus increasing retail demand.

Higher economic growth relative to other major Australian states would also support retail demand, said CBRE research analyst Cameron Douglas-Perrine.

In addition, the report highlights that institutions have been the most active purchasers of shopping centres in Western Australia, accounting for 63 per cent of deal activity in the past three and a half years, compared to private owners (32 per cent) and family office/trusts (5 per cent).

Neighbourhood shopping centres have been the most actively traded, followed by sub-regional shopping centres, with only one CBD asset traded.