Figures Adelaide Industrial and Logistics 4Q22

Key Points

‒Take-up in 4Q22 totaled 77,000 sqm, bringing the CY2022 total to 115,000 sqm (28% below the 10-year average). Low stock levels and moderating activity weighed on take-up in 2022. 

‒Total supply added in 4Q22 amounted to 71,693 sqm, bringing the CY2022 total to 129,284 sqm (above the 10-year average of 75,000 sqm).  

‒The 2023 supply pipeline stands at 85,000 sqm, with 55% of the stock pre-committed.

‒Strong rent growth continued with average super prime net face rents increasing 3.1% q-o-q and 16.3% y-o-y to AUD 125/sqm.

‒Growth in land values eased during 4Q22, holding steady q-o-q. On a y-o-y basis 1.6 ha lots have increased 25.0%, and 0.25 ha lots have increased 17.8% on average across the North West, Outer North, West and South West precincts.

‒Sales volume over 4Q22 was muted at AUD 20.1 million (transactions ≥ AUD 5 million) bringing the 2022 total to AUD 679 million, above the 10-year average of AUD 353 million.

‒Super prime midpoint yields expanded 43 bps q-o-q to an average of 4.76% as cost of capital continued to increase in the back half of 2022.