Australia's Industrial & Logistics Vacancy Report 2H24

National vacancy rate has edged up to 2.5% - remains one of the lowest on record globally. 

Our Industrial & Logistics Vacancy Report has become the definitive reference point for the industry. Widely regarded as the most accurate and comprehensive analysis available, it sets the benchmark that others rely on to gauge market trends and performance.

The vacancy rate trend throughout 2024 has aligned with our expectations, showing increases across all markets but remaining below the 4% ‘equilibrium’ level. In fact, vacancy rates have moved up slower than anticipated for the Sydney market – only edging up by 10bps over the past 6 months.

A ‘flight to quality’ trend, like the office market, is evident, with continued demand for good quality assets in core locations, as well as for infill/last-mile locations.

The bifurcation in vacancy rates across precincts and resulting rental growth observed over the past year is expected to continue into 2025. We believe most of the rise in incentive levels has occurred over 2H24, and we anticipate a more moderate rate of growth in rents and incentives throughout 2025.

Over the medium to long term, Australia’s supply of serviced zoned industrial land will remain constrained, and this will continue to play a role in a limited development supply pipeline. This scarcity, combined with Australia’s expanding net exports, e-commerce sector, and strong population growth, will continue to support the long-term growth of the sector.

Our Industrial & Logistics Vacancy Report for the second half of 2024 highlights the current vacancy rate by city and by precinct, as well as the historic trend.