Australia Industrial & Logistics Figures 1Q22

April 12, 2022

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  • Australia’s e-commerce penetration rate continues to rise and is at a new record of 14.6% (or AUD 55 billion over the past 12 months).
  • Gross take-up over the quarter has fallen considerably due to record low vacancy across all cities. The concentration of leasing activity remains in the Melbourne market.
  • E-commerce related occupiers have accounted for 17% of floorspace leased in 1Q22.
  • Although the supply pipeline in 2022 is expected to reach a 10-year high of 2.7 million sqm, only 8% of the total year floorspace completed in 1Q22.
  • Rental growth over the past 12 months has reached a record high of 6.6% for super prime grade assets, with the Sydney market exhibiting strongest y-o-y growth of 11.9%.
  • Yields compressed marginally over the quarter. National midpoint yields for super prime grade assets stand at 4.49%.
  • Investment sales (≥ AUD 10 million) in 1Q22 totalled AUD 1.1 billion, with the volume of activity expected to remain relatively low in 2022.