Adelaide Industrial and Logistics Figures Q1 2023

April 12, 2023

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  • Australia’s e-commerce penetration rate equates to 12.7% (or AUD 53 billion over the past 12 months).
  • Gross take-up in 1Q23 has totaled only 443,261 sqm, which significantly below the 5-year quarterly average rate – owing to record low vacancy (national average vacancy rate at 0.6%, as 2H22).
  • Around 13% of the total new floorspace to be delivered in 2023 was completed in 1Q23, with total new supply for the CY2023 expected to reach a record high of 3.1 million sqm. The 2023 pipeline is 66% pre-committed.  
  • Rental growth over the quarter continues to climb, with the NFR supply-weighted average super prime grade assets increasing by 5.2% q-o-q due to a chronic shortage of space. Melbourne recorded the second highest q-o-q growth in net face rents (+7.0%).
  • The national average midpoint yield for super prime grade asset now stands at 4.85%.
  • Investment sales for income producing assets (≥ AUD 10 million) in 1Q23 totaled AUD 0.3 billion.