Report

Australia Industrial & Logistics Figures 4Q21

February 6, 2022

Australia’s e-commerce penetration rate continues to rise and is at a new record of 14.3% (or AUD 52 billion over the past 12 months).
An all-time high of 4.2 million sqm of gross take-up has been recorded in CY2021, with the concentration of leasing activity in the Melbourne market.
E-commerce related occupiers have leased just over 800,000 sqm (or 19%) of space in 2021.
Total new stock completions over CY2021 has surpassed the 10-year annual average (1.5 million sqm) totalling 1.8 million sqm, however a shortage of floorspace due to strong occupier activity continues to drive the national vacancy rate to a record low of 1.3%.
Rental growth over the past 12 months has reached 4.4% for super prime grade assets. The lack of available space has driven strong rent growth over 4Q21 for secondary grade assets.
Yields continued to compress across all major markets nationally, and industrial midpoint yields continue to fall below the office sector, with a record yield spread of 40 bps between super prime industrial and prime CBD office.
Investment sales (≥ AUD 10 million) over 2021 reaches an all-time high of AUD 16 billion.