Figures Melbourne Industrial and Logistics 3Q24

Key Points

• Gross take-up over the quarter decreased compared to the previous quarter and totalled c.78,000 sqm. Total take-up levels across the state remains healthy, albeit concerns about high lead times remain prevalent.
• New floorspace added to the market in 3Q24 totalled c.78,000 sqm across 7 projects, with most of the supply delivered within the West precinct (59%).
•  Average super prime, prime and secondary rents showed continued normalisation in 3Q24, with q-o-q growth rates of 1.2%, 0.7% and 1.3%, respectively. Rents across Melbourne have stabilised following weakening enquiry and leasing volumes.
• Land values continue to see downward pressures, driven by economic feasibility concerns, combined with construction and holding cost increases.
• A total of around AUD 870 million of investment sales (for transactions greater than and equal to AUD 5 million) was recorded in 3Q24 across 8 transactions.
• Midpoint yields expanded by 25bps over the quarter across all asset grades.