Figures Melbourne Industrial and Logistics 1Q24

Key Points: 

• Gross take-up in 1Q24 totalled c.151,000 sqm, a 47% reduction from the level recorded in 4Q23. This decline is attributed to increases in lead times for deals across the state.

• New floorspace added to the market over the quarter totalled c.185,000 sqm across 11 projects, with most of the supply delivered within the West precinct (61%).

• Average super prime, prime and secondary rents increased in 1Q24, with q-o-q growth rates of 5.6%, 3.2% and 2.2% respectively.

• Land values continue to see downward pressures, driven by economic feasibility concerns, combined with construction and holding cost increases.

• A total of around AUD 143million of investment sales (for transactions greater than and equal to AUD 5 million) was recorded in 1Q24 across 9 transactions.

• Midpoint yields remained unchanged over the quarter across all asset grades.