RESEARCH
AUSTRALIA’S industrial market boom is coming to an end as vacancies stabilise and rental growth slows across the three largest core markets. At the same time, institutional...
According to Savills’ latest Industrial Shed Briefing for November, Sydney West, Melbourne West and Brisbane Southside have seen rental growth stall as the cycle of record growth...
Signs of deceleration have been evident throughout 2024, with both rental growth and speculative construction rates gradually declining...
While the three largest core markets remained unchanged over the period, Adelaide North-West recorded 2.9% of growth and Perth Core saw a 3.2% increase in Q3...
On average, prime net face rents are still sitting around 50% higher than the same period in 2021, and over 60% higher than in the pre-COVID 2019...
In Sydney’s West, net face rents adjusted downwards in Q2, and average prime incentives have risen from 7.5% in 2023 to 17.5% in 2024, resulting in a nearly 10% decline in...
There has been a notable uptick in the leasing of spec space, representing 14% of deal volumes and nearly double what we have seen in any quarter over the last year...
It reflects increased demand for higher quality buildings, and a potential rebound from retailers and distributors ahead of the peak holiday shopping season...
This significant growth suggests that scale investors are re-engaging with industrial. This is supported by a noticeable recovery in buy-side activity, particularly from institutional investors...
Japanese giant Mitsubishi Estate Asia (MEA) entered the local market with plans to develop a $175 million industrial estate in Melbourne’s south-east...
Other major transactions over the period including Aware Super and Barings’ acquisition of Austrak Business Park in Melbourne for around $600 million and...
The rebound in investment volumes over the past two quarters, along with substantial capital waiting on the sidelines, reflects strong confidence in the sector’s future investment...
Investors are actively repositioning for returns, driven by favourable demographics and the strong demand profile in industrial and logistics, both of which are encouraging increased...
In Sydney, the vacancy rate was up from 3.62% in July to 3.75% in October, with Melbourne up from 3.07% to 3.09% and Brisbane held stable at 3.38%.