Industrial rents climb but landlords raising incentives in bid to secure tenants

[{"selector":"#anim-98f38bf1-7056-49c9-bb23-a26a12a5f247 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] INDUSTRIAL rents are heading for their second highest-ever year of growth in 2023 – behind only last year – with some Sydney precincts currently tracking at... Read more

[{"selector":"#anim-7a79773d-0a53-4b66-b21d-e74bd2ca7f96 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Gross State Product (GSP) weighted prime net face rents increased by 4.2% quarter-on-quarter nationally over the September quarter, substantially above average... Read more

[{"selector":"#anim-7ab76316-8af8-4009-bbce-036c9cadba5d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Rental growth in 2023 year-to-date has reached 13.6% over the first three quarters. The only year to surpass this is 2022, which peaked at 22.9% year-on-year... Read more Read more

[{"selector":"#anim-7fb2651f-1b4e-40f6-af17-f5cee5de834d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-3.4034399948172863e-15%, 2.5495635385903583e-7%) scale(0.8403361344537815)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Sydney precincts recorded the steepest rises in prime net face rents over the quarter. South Sydney increased by 8.2% during the quarter to $344 per sqm and... Read more Read more

[{"selector":"#anim-f55cbcba-6e5a-439a-908d-8f7b92ab3e18 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Secondary assets net face rents also grew strongly in these precincts, ranging between 6.6% in the quarter in outer north west and 7.7% in south Sydney... Read more

[{"selector":"#anim-d5acab49-77d1-4ad8-83af-c205807bd915 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Brisbane’s northern and Trade Coast precincts recorded strong prime and secondary growth for the quarter, up 6.8% and 10.7% quarterly and yearly in... Read more

[{"selector":"#anim-d6836c27-0a10-4718-bb38-617218f7f6a3 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] In Melbourne, rental growth in the north (up by 6.8% quarter-over-quarter, 27.2% year-over-year) and south east (5.9% and 16.7%) continues to show strength... Read more

[{"selector":"#anim-2092f786-77cf-417d-9177-f527ee6ac895 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] “Strong rental growth is reflective of ongoing still tight market conditions in most eastern seaboard precincts. Demand is moderating as rising inflation challenges... Read more

“However, to date the supply response has been slow to respond to strong rental growth and low availabilities.”... Read more

[{"selector":"#anim-06f6a9c0-11aa-4b3f-89b6-b2aaefb23036 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Adelaide’s prime market performed well, with most precincts experiencing quarterly rental increases. These ranged from 3.4% in the inner west/east to... Read more

[{"selector":"#anim-150a6e2d-3537-47f7-b5c6-b9eb808b60b3 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] McFarlane expects conditions to ease for tenants over the last months of 2023 and 2024, rental growth rates to moderate and incentives to cycle up. JLL is tracking... Read more

[{"selector":"#anim-d8df3443-4f25-4751-8b1e-32958f590b7c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] “Pre-commitment levels are building but still relatively low at 40%, meaning a return to a more balanced market for 2024,” McFarlane said... Read more

[{"selector":"#anim-c334ad95-1585-4c07-950f-f185ad496030 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Gross take-up in the September quarter was 533,320 sqm, below the quarterly average and lower than the heightened levels recorded in the June quarter of 819,100 sqm... Read more

Meanwhile, as demand moderates and supply picks up landlords and developers are increasing incentives from their record lows to secure tenants... Read more

[{"selector":"#anim-0dcd7e71-daf6-477f-9d3b-387fa5521fd3 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The most significant change in average incentives was recorded in Melbourne’s north where incentives reached a record low of 8% in early this year and are... Read more Read more

[{"selector":"#anim-8745c7c6-8730-4ae6-858c-98ed4136e570 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Incentives in Brisbane precincts remain well below historical average and range between 7% and 8%, depending on precinct... Read more

[{"selector":"#anim-27375fdb-52f9-4419-b288-561d7c701779 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(4.932693372218877e-15%, 2.5074219883873775e-7%) scale(0.8264462809917356)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Sublease is increasing in key markets as opportunistic occupiers tap into positive rental reversion potential for underutilized space... Read more

[{"selector":"#anim-8955141a-8975-4a17-a502-eb6affb20fe9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.5527136788005e-15%, 2.528317205966838e-7%) scale(0.8333333333333334)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] “Tenants now have more choice and landlords and developers need to compete harder to secure leases. Developers are opting to secure preleases at an... Read more

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[{"selector":"#anim-a2a6b056-ac5c-4f9a-a1eb-22d953ffe254","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ce5b10ca-436f-4809-a5e3-683f860c2a48","keyframes":{"transform":["translate3d(-262.68657%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Our Website Our Website Our Website Our Website Our Website Our Website Our Website Our Website

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Industrial rents climb but landlords raising incentives in bid to secure tenants

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