Figures Australia Industrial and Logistics Q1 2025

Key Points:

• Australia’s vacancy rate averages 2.5% (as at 2.H4) and remains one of the lowest globally.
• Gross take-up in 1Q25 was 22% higher than what was recorded in 1Q24, with Melbourne continuing to contribute to the highest share of floorspace leased.
• The 2025 supply pipeline is expected to reach 18% above the long-run average of 1.9 million sqm. Around 50% of the new supply in 2025 is currently pre-committed.
• Sydney and Perth were the only markets to record rental growth over the quarter.
• Despite positive net face rent growth nationally (+0.8% q-o-q), there was no effective rent growth due to incentive levels increasing for super prime grade assets. 
• The national average midpoint yield for super prime grade assets has marginally compressed and stands at 5.87%. Yield compression was recorded within the Sydney and Brisbane markets.
• Investment sales for income producing assets (≥ AUD 10 million) for 1Q25 totaled close to AUD 1 billion.