Figures Adelaide Industrial and Logistics 3Q24

Key Points 

• Gross take-up recorded in 3Q24 totalled c.30,300 sqm bringing the 12-month rolling total to c.88,500 sqm, below the 10-year annual average of c.150,000 sqm.
• There was c.10,300 sqm of new industrial stock added in 3Q24. The rolling 12-month development supply totals c.63,800 sqm, which is below the 10-year average of c.87,600 sqm.
• The development supply between 2024F and 2027F currently averages c.89,000 sqm per annum which is in line with the 10-year average. As of 3Q24, the pre-commitment rate for the forward pipeline between 4Q24 and 4Q27 is just over 60%.
• Adelaide’s low vacancy rate (1.3% as at 1H24) continues to drive rent growth. In 3Q24 super prime net face rents increased by 10.2% y-o-y to an average of AUD 149/sqm. Average super prime incentives increased to 11.3% from 10.0% in the prior quarter.
• Constrained industrial land supply and owner occupier demand in Adelaide’s core industrial precincts continues to drive land values higher, with 0.25ha lots increasing by 30.7% y-o-y and 1.6ha lots increasing by 19.9% y-o-y.
• Super prime midpoint yields expanded by 6 bps q-o-q and now sit at an average of 6.2%.