Figures Perth Industrial and Logistics 1Q24

Key Points: 

• Gross take-up in 1Q24 eased from an active 4Q23, down nearly 50% q-o-q to total; c.28,700 sqm.

• Roughly 43,800 sqm of new industrial stock was added to the market over the quarter. After nearly 250,000 sqm of new stock was completed in 2023, a total of just c.87,000 sqm of industrial stock is scheduled to complete in 2024 due to several projects put on hold and delays.

• An average of c.160,000 sqm of new stock is scheduled to complete between 2024 and 2026, above the 10-year historical average of c. 125,000 sqm. However, the impact to vacancy is expected to be limited as 69% of stock scheduled to complete between 2024 and 2027 is pre-committed.

• Rents for super prime grade assets increased 11.5% y-o-y to AUD 145/sqm, while incentives rose to 10% as the market transitions towards higher face rents and incentives.

• After a lengthy period of stagnation, land values increased in 1Q24, particularly smaller lots (0.25 ha lots increased 6.2% y-o-y)

• Super prime midpoint yields expanded 25bps q-o-q to 6.25%, while prime and secondary grade yields remained unchanged q-o-q.