Figures Adelaide Industrial and Logistics 1Q24

Key Points:

• Gross take-up in 1Q24 totaled c.5,200 sqm bringing the 12-month total to c.57,400 sqm, significantly below the 10-year annual average of c.145,000 sqm
• There was c.3,900 sqm of new industrial stock added in 1Q24, with expected supply to total c.55,200 sqm for 2024. New supply forecast for CY2024 is 28% below the long-run average
• The pre-commitment rate for the 2024-2026 pipeline is strong at 93%
• Given persistently low vacancy levels (1.5%, 2H23), average net face rents in Adelaide for super prime grade assets increased by 4.4% over the quarter to a new average of AUD 141/sqm.
• Land values for smaller lots (0.25 ha) appreciated by an average of 4% over the quarter, whilst land values 1.6ha lots across the core precincts remained unchanged.
• Sale volumes in 1Q24 remained muted, totaling AUD 7.9 million (transactions ≥ AUD 5 million).
  Super prime midpoint yields in Adelaide remained unchanged over the quarter sitting at 6.03%.