Australia's Industrial & Logistics Vacancy Report 1H25

The national vacancy rate lifts, however, remains at one of the lowest levels globally.

The CBRE Research Industrial and Logistics vacancy figure is the most widely quoted statistic in the industry due to the depth and accuracy of our methodology. We leverage the most comprehensive stock list in the market, tracking assets over 5,000 sqm (NLA) in Sydney and Melbourne, and over 3,000 sqm (NLA) in Brisbane, Perth and Adelaide. The vacancy reflects floorspace that is built and now available to occupy, thus including sub-lease space.

Australia’s average Industrial & Logistics vacancy rate trended upward through 2024 and into the first half of 2025, broadly in line with expectations. While vacancy has increased across most markets, it remains below the 4% ‘equilibrium’ threshold and now averages 2.8%. Notably, vacancy in Sydney and Brisbane has risen more gradually than anticipated – each edging up by only 40 basis points over the past six months. Adelaide held steady, and Perth recorded a modest decline.

Melbourne, meanwhile, continues to exhibit a pronounced bifurcation in vacancy across its precincts. The South East / East remains exceptionally tight , with vacancy below 2%, while other precincts report vacancy rates exceeding 5%. This dynamic is expected to persist in the second half of 2025.

Sub-lease availability has seen a slight increase in Perth and Adelaide, whereas Sydney’s sub-lease share continues to decline – now accounting for less than 20% of total vacancy – mitigating concerns around hidden supply in that market.

Looking ahead, Australia’s supply of serviced, zoned industrial land is expected to remain structurally constrained, limiting new development pipelines. This scarcity, combined with the ongoing expansion of e-commerce and food & beverage occupiers, as well as sustained population growth, will remain key drivers of long-term sectoral growth.

 
Our Industrial & Logistics Vacancy Report for the first half of 2025 provides the vacancy figures at a city level; a precinct level analysis is provided on a subscription basis.