Perth Swedish Auto Centre, which has rented the site for the past 12 years, recently put up signs announcing its intention to move to Osborne Park.
The business expects to complete the move to its new garage this month.
Manager James Stewart said the area was no longer a garage site.
‘The area has diversified in such a way that an industrial garage is not suited,’ he said.
‘We were also finding it hard to expand our business.’
North Perth business and residents group chairman Steve Catania said the site could become the next big development in the area.
‘It is a huge lot and while there could be some issues with health regulations as it has been a petrol station, there is potential,’ he said.
Mr Catania said North Perth was changing, with professionals and young families moving into the suburb.
‘We are offering North Perth town centre as an alternative to somewhere like Beaufort Street,’ he said.