Australia Industrial & Logistics Figures 4Q21

February 6, 2022

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  • 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.