Canning Vale, Welshpool and Wangara - the first choice for modern, well-leased A Grade industrial property

Some of the country's biggest property groups are on the hunt for industrial property, with the Perth market high on the radar.

According to Colliers International some $1 billion in funds is ready to be invested in prime investment stock and land for pre-lease Australia-wide.

Property groups Lend Lease, Charter Hall, and Goodman were all on the hunt for assets, said Colliers International director of industrial property Wayne Chorley and that high on their list were Western Australia assets.

"While those big institutional buyers have probably been more east coast-focused in the past, such is the current demand and the thirst for industrial assets they’re turning their eyes nationally, and broadening the net, " he said.

The state's strong population growth - the highest in the country - and low unemployment rate, combined with steady rent and capital values have been a major attraction for those institutional investors in the WA market, said Mr Chorley.

Since June last year, the Perth market has seen major deals totalling more than $210 million bedded down, including Goodman’s purchase of a $22 million Canning Vale property tenanted by Mayne Logistics, and Charter Hall’s $61.5 million acquisition of a 50 per cent stake in another Canning Vale asset tenanted by Foodland Associated.

“The first choice asset profile being sought is modern, well-leased A Grade industrial property in prime locations – so in the Perth market that means the likes of Canning Vale, Welshpool and Wangara," said Mr Chorely.

As a result of the level of transactional activity, he said "we’ve seen at that top end of the market over the past 12 to 18 months, stock is tight – and that means yields must tighten.”

He noted on the backdrop of the slowing of the resources sector and shelving of oil and gas projects.

He said the effect these had on WA’s property market had received widespread airplay in recent months.

"The industrial market was less exposed to any downturn in that sector than other commercial property classes," he said.

He said the resources sector was not a major influence in the industrial real estate market but residential constincluding was because of the "multiplier effect" it created - meaning the lift in demand for construction materials.

Private house approvals in WA currently remain  above the ten-year average.