Rising incentives put downward pressure on industrial rents

RESEARCH

AUSTRALIA’S industrial market has recorded its first negative quarterly reading for effective rents since March of 2021, as incentives increased around the country and e-commerce...

JLL’s research figures for the September quarter showed face rental growth slowed to 0.9% quarter-on-quarter, while annual growth remains very strong, up 12.5% year-on-year...

However, effective rents fell nationally by 1.8% as developers and landlords compete for tenants and incentives increased in most markets. Effective rents peaked in late 2023 in most locations...

Key markets along the eastern seaboard recorded mixed net face rental growth. Solid gains in were seen in Sydney’s Inner West (up by 1.1% quarter-on-quarter) and...

Nationally, prime and secondary face rental growth was recorded in 15 and 13 out of the 22 tracked precincts for the quarter...

Adelaide was a “notable outlier” this quarter. Incentives in the Adelaide market range from 0% to 20% depending on precinct and stabilised in the September following uplifts in...

Occupier demand nationally continues to rebound, as gross take up increased again in the three-month period to 845,500 sqm, higher than both the first and second quarter totals...

3PL companies are waiting to secure a particular contract before they commit to new facilities. Additionally, many are still rightsizing distribution networks down from...

Holding costs are likely to impact developers in markets where land values and land tax rates have increased substantially, and land tax bills have more than doubled...

While e-commerce demand is normalising, NAB’s online retail sales index showed Australia’s online penetration rate increased again, to 13.5% in July from the trough recorded at...

The world of online shopping is still growing as consumers have made it part of their daily lives and this bodes well for the long-term resilience of logistics occupier demand...

Notable right sizing activity from large transport logistics occupiers supported robust demand for existing space in the September quarter, accounting for 64% of all take up volumes...

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