Australia's Industrial & Logistics Vacancy Report 1H26

The national vacancy rate remains unchanged (3.2%) – continues to be 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 remained unchanged at 3.2% in 1H26, below CBRE’s previous forecast (3.4%). The result suggests vacancy has begun to stabilise and reinforces the view that the market is at, or very near, its cyclical peak. National vacancy remains below the sector’s long-term equilibrium threshold of 4%, reflecting balanced market conditions despite continued variation across individual markets.

Occupier demand strengthened considerably throughout the first half of 2026, with national net absorption exceeding 1.4 million sqm - more than double the level recorded in 2H25. This highlights the market’s capacity to absorb new supply and suggests leasing demand has remained more resilient than many anticipated.

Market performance varied across Australia. Melbourne remained unchanged at 4.7%, while Brisbane and Adelaide were broadly stable. Perth tightened further to 1.0%, reflecting ongoing supply constraints and strong occupier demand. The largest movement was recorded in Sydney, where vacancy increased to 3.5%.

A clear trend is emerging across Australia’s major logistics markets. Vacancy is becoming increasingly concentrated within older prime and secondary grade assets, while modern super prime facilities continue to outperform. 

In Sydney, vacancy growth was largely concentrated within the Outer South West, where several existing vacancies remain unleased. Similarly, Melbourne’s vacancy profile remains dominated by older stock, with super prime facilities accounting for only a relatively small proportion of available space despite elevated vacancy across several precincts. 

With the development pipeline moderating and occupier demand strengthening, vacancy is still expected to reach its peak during 2H26 (3.5%); however, any further increase is anticipated to be marginal. National vacancy is forecast to remain below 4% before gradually trending lower from 2027.

Over the longer term, Australia’s structural shortage of serviced and appropriately zoned industrial land remains unchanged. Combined with continued population growth, expanding e-commerce activity and increasingly sophisticated supply chain requirements, these factors are expected to underpin sustained demand for modern industrial facilities across Australia’s major logistics markets.