RESEARCH
AUSTRALIA’S industrial rental growth has slowed over the second quarter, despite ongoing tight supply across the nation’s eastern seaboard.
According to Knight Frank’s Australian Industrial Review Q2 2023, vacant space in the sector was sitting at 526,806sqm across Sydney...
At the same time, available space was up 19.5% in the second quarter, with Melbourne up 37% to 233,465sqm and Brisbane up...
“Available speculative space now accounts for 48% of total East Coast vacancy, with 42% of this still under construction and unavailable for...
“Leasing take-up increased by 27% in Q2 after a relatively quiet Q1, but remains lower than the frenetic levels of 2022, with activity still...
“The strong supply pipeline for 2023 will help to ease the tight vacancy, particularly for the east coast, with 2.6 million square metres on...
Adelaide was the only market to avoid moderating rental growth over the quarter, with prime rent growth of 5%...
For the quarter, Sydney same prime rent growth at 4%, Brisbane at 3%, Melbourne at 2% and Perth at just 0.4%...
Though annual rental growth was stronger with Sydney recording a 39% increase, Perth up 27%, Brisbane up 24%, Adelaide up 14% and Melbourne up 13%...
James Templeton, national head of industrial and logistics at Knight Frank, noted the relatively low volume of leasing deal over the...
“However, sustained demand for new space and ongoing tight supply will continue to put upward pressure on rents, albeit at a slower pace,”...
“Growth is expected to revert towards an annual pace in the range of five to eight per cent over the next 12 months.”...
Over the period, there were $1.9 billion in transactions recorded across Australia’s industrial market, with the Q2 turnover around...
“Perceived resilient tenant demand and ongoing rental growth has ensured an engaged, if discerning, buyer pool for Australian industrial assets...
“As inflation and the cost of funds landscape is appearing more settled, major investors have been quick to return to the industrial market...