Figures Perth Industrial and Logistics 3Q24

Key Points

• Gross take-up totalled c.71,200 sqm over the quarter, bringing the 2024YTD total to c.165,600 sqm (+25% y-o-y).
• New floorspace added totalled c.71,200 sqm over 3Q24. The current pipeline of new development supply between 2024 and 2027 is forecast to total an annual average of c.160,000 sqm, which is above the 10-year average of c.123,000 sqm. The pre-commitment rate for the forward pipeline (4Q24-2027) is close to 55% as of 3Q24.
• Super prime net face rents now average AUD 150/sqm, up 11.1% y-o-y. Super prime incentives have increased to an average of 12.5%, up from 5.0% a year ago, which has resulted in a more modest net effective rent growth rate of 2.3% y-o-y.
• Land values continued to increase over the quarter. Large lots (1.6 ha) have increased y-o-y by 8.0% and now average AUD 518/sqm. Smaller 0.25 ha lots increased by 14.9% y-o-y to a new average of AUD 611/sqm.
• Sales transaction volumes for 2024YTD totals AUD 359 million, which has surpassed the AUD 229 million recorded in CY2023. Yields were steady q-o-q across all grades with super prime and prime midpoint yields remaining at 6.3% and 6.5%, respectively.