Sydney Industrial and Logistics Land Supply 2025

Our assessment of Western Sydney’s land supply marks a significant milestone, providing unprecedented insights and setting a new benchmark in research capabilities within the sector. 
 

CBRE’s land supply analysis leveraged an in-depth dataset, assessing each parcel of land in Western Sydney across two critical factors:

1. Development potential: determining whether land can be developed.
2. Timing: assessing when each land parcel will become available for development.

To achieve this, CBRE conducted an in-depth, site-specific research analysis, providing deeper insights than previous studies.

Analysis breakdown:

• Identifying truly developable land.
• Established timelines for availability.
• Applying demand and land absorption assumptions to forecast market trends.

Key Points:

• Only 4% (or 564 ha) of the total industrial zoned land in the Sydney Metropolitan Region is undeveloped and serviced.
• We have identified only 190 ha of land available for development over the next 12 months in Western Sydney.
• Land absorption reached a peak of 228 ha in 2023 and has averaged 190 ha per annum over the past three years. Western Sydney Airport is expected to further boost land absorption levels in the medium to long-term.
• Sydney faces a land supply deficit in the range of 91 ha to 319 ha between 2025 and 2030.
• E-commerce occupiers have been driving demand for new space over the past few years.
• The supply response has been insufficient to meeting demands in the Sydney market and this has led strong rent growth since 2021.
• Sydney has one of the tightest vacancy rates (2.1%), and this is forecast to remain at sub-4% over the next 12 months given a high level of pre-committed development supply.
• Appreciation in land values and continued positive rental growth is likely to persist in the Sydney market given the chronic shortage of land supply.