Industrial property analysts report that warehouse vacancy rates across major Australian markets have reached historic lows, with demand far outpacing new supply.
Market Statistics
Vacancy Rates
| Market | Vacancy Rate | YoY Change |
|---|---|---|
| Sydney | 0.8% | -0.4% |
| Melbourne | 1.2% | -0.6% |
| Brisbane | 1.5% | -0.3% |
| Perth | 2.8% | -0.5% |
Rental Growth
- Sydney: +18% year-over-year
- Melbourne: +15% year-over-year
- Brisbane: +12% year-over-year
Demand Drivers
Strong demand attributed to:
- Continued e-commerce growth requiring fulfilment space
- Supply chain resilience strategies increasing inventory holdings
- Nearshoring trends bringing manufacturing closer
- 3PL expansion to meet client requirements
Outlook
Developers report significant new construction underway, but most is pre-committed. Relief for occupiers seeking space not expected until late 2024 at earliest.