Australia's Industrial & Logistics Vacancy Report H2 2022

December 14, 2022

Image shows empty storage racks in an industrial warehouse with a forklift in the background.

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National vacancy rate dips to another record low of 0.6% - still the lowest on record globally.

The national vacancy rate has further fallen since H1 2022 and now stands at a new record low of 0.6%, with the downward movement recorded for all major markets across Australia.

Our Industrial & Logistics Vacancy Report for the second 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.


While vacancy rates in other countries remain low, we have begun to see a slight uptick in some offshore markets, mainly owing to a significant slowdown in the e-commerce penetration rate. We expect to see more of this globally over the next six-to-12 months amid the challenges of the global economic market, however the supply-demand dynamics in Australia are unique. The Australian market is shaped by pent-up demand, with an immature-but-growing e-commerce sector and a chronic undersupply of industrial space, which will keep vacancy rates at extremely low levels.