Figures Sydney Industrial and Logistics 3Q24

Key Points

• Gross take-up increased compared to 2Q24, totalling circa 206,000 sqm over 3Q24. The Retail Trade sector dominated total floorspace leased (44%).
• Average vacancy rate has risen, however remains relatively low at 2.0% (as at 1H24).
• Development completions increased over the quarter, with 312,000 sqm of new floorspace added to the market.
• Rental growth increased over the quarter with super prime net face rents increasing by 1.9%. The y-o-y growth rate stands at 7.3% (average super prime grade assets). Incentives across all asset grades continue to rise.
• Average land values for all lot sizes have decreased with ‘infill’ precincts showing the most resilience on a y-o-y basis.
• A total of AUD 268 million of investment sales has been recorded in 3Q24, across 9 transactions (for sales ≥ AUD 5 million).
• Super prime and prime midpoint yields stand at 5.5% and 5.6%, respectively.