Australia Industrial & Logistics Vacancy Report - H1 2022

July 1, 2022

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National vacancy rate dips to an all-time low of 0.8% - one of the lowest on record globally. 

The national vacancy rate has further fallen since H2 2021 and now stands at a new record low of 0.8%, with the downward movement recorded for all major markets across Australia. Our Industrial & Logistics Vacancy Report for the first half of 2022 highlights the current vacancy rate by city and by precinct, as well as the historic trend. The Report delves into the net absorption of floorspace, and associated significant rental growth trend we are witnessing. There is a chronic shortage of supply in the Australian market, and some new development projects’ completion dates have now been delayed to 2023 due to weather and supply chain disruption (material shortages). The Australian market is less susceptible to major fluctuations in supply due to a relatively low share of speculative activity (33%) vs. other major markets such as the US (76%). This, coupled with persistent demand for space from occupiers, means we don’t expect to see much movement in the vacancy rate over the next 6 months.