An Overview of Industrial Leasing Across Australian Regions

Discover the dynamics of industrial leasing in various Australian regions. This overview delves into market trends, major players, and regional nuances shaping the industrial real estate landscape. Gain valuable insights into the diverse industrial leasing market across different parts of Australia.

In the first quarter of 2024, gross industrial leasing in Outer West Sydney nearly doubled compared to the previous period, reaching 300,000 square meters, as reported by Dexus Research. Nonetheless, the gross leasing for the latest quarter was less than half that of the preceding quarter.

The report noted that the quarter's take-up primarily consisted of Transport and Warehousing, along with Manufacturing tenants. Humes and Allmach Systems, situated in the South West, contributed to supplying products to Sydney's ongoing infrastructure projects. Prime net face rents increased by 1.7% during the quarter and 8.2% annually.

Here’s more from Dexus Research:

West Melbourne 

Leasing activity in West Melbourne decelerated over the 12 months leading to Q1 2024. However, the first quarter of 2024 saw a 10% increase in take-up compared to the previous quarter, totaling 100,000 square meters. Infrastructure projects remained prominent, with leases granted to BTi Logistics, Apex for rail transport, Enersys for energy, and World Wire Cables. Anticipating a surge in take-up due to upcoming supply, rising vacancy rates are expected. Despite prime net face rents rising by 17% annually, increased incentives moderated effective growth.

Brisbane (South & Australian Trade Coast) 

In the twelve months leading up to March 2024, gross leasing in Brisbane surpassed pre-pandemic levels and exceeded the 10-year average. The Trade Coast precinct outperformed the southern region, experiencing a notable surge in leasing activity compared to a slowdown in Southern Brisbane. Transport tenants drove leasing in the Trade Coast. Prime net face rents increased by 5.9% in Q1 2024 in the Trade Coast and by 3.8% in Southern Brisbane. However, growth is anticipated to moderate as vacancy rates rise throughout the year, accompanied by further increases in incentives.

Perth (East & South) 

In the year leading up to March 2024, Perth witnessed a considerable amount of gross take-up, surpassing the 10-year average for the third consecutive year. South Perth experienced a notable increase in take-up during the quarter, while East Perth's take-up slightly declined compared to the previous two quarters. Demand was primarily fueled by engineering and logistics sectors, with Downer Group and Energy Logistix securing space in South Perth, the latter at Jandakot. Despite the heightened demand, prime net face rents remained unchanged in all Perth markets over the past 12 months.

Source: realestateasia