Adelaide Industrial and Logistics Figures Q2 2023

Key Points:

• Australia’s e-commerce penetration rate has stabilized and equates to 12.7% (or AUD 53 billion over the past 12 months).
• Gross take-up in 2Q23 has totaled half a million sqm, which is significantly below the 5-year quarterly average rate (c.900,000 sqm) – owing to record low vacancy rates (national average stable at 0.6%, as at 1H23).
• Around 23% of the total new floorspace to be delivered in 2023 was completed in 2Q23, with total new supply for the CY2023 expected to reach a record high of 3.2 million sqm.
• Rental growth over the quarter continues to climb, with the supply-weighted average super prime grade assets increasing by 5.0% q-o-q due to a chronic shortage of space. Melbourne recorded the highest q-o-q growth in super prime net face rents (+7.5%).
• The national average midpoint yield for super prime grade asset now stands at 5.36%.
• Investment sales for income producing assets (≥ AUD 10 million) in 2Q23 totaled AUD 1.6 billion.