Australia’s national industrial & logistics vacancy remains steady at 3.2%

Australia’s average industrial & logistics vacancy rate remained stable at 3.2% in the first half of 2026 indicating the national vacancy is nearing its cyclical peak, new CBRE research shows.

CBRE’s Industrial & Logistics Vacancy First Half 2026 report shows national vacancy remains below the sector’s long-term equilibrium threshold of 4%, reflecting balanced market conditions despite variations across individual markets.

Market performance varied across the country with Sydney’s vacancy increasing to 3.5% while Melbourne remained steady at 4.7%. Brisbane's vacancy rate is 3.0%. Adelaide’s vacancy rate increased slightly to 2.0% and Perth tightened to 1.0%. 

CBRE’s Head of Industrial & Logistics Research Sass Jalili noted the national vacancy rate is below the previously forecast 3.4%. 

“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,” she said.

“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,” Ms Jalili added.

Looking ahead, Ms Jalili noted with the development pipeline moderating and occupier demand strengthening, vacancy is expected to reach its peak during 2H26 at 3.5%. However, any further increase is anticipated to be marginal with national vacancy forecast to remain below 4% before gradually trending lower from 2027.

CBRE’s Regional Director, Industrial & Logistics, Tom Rourke said the market carried positive momentum into the first half of the year following a strong fourth quarter in 2025.

“Transactional activity across the first half of 2026 has reinforced that occupiers remain focused on operational functionality and will commit when the commercial terms stack up. Landlords who have met the market - through competitive incentives, early access, and meaningful fit-out contributions - have been rewarded with leasing outcomes, while secondary-grade assets continue to face the greatest pressure, though motivated owners and realistic pricing are continuing to find a market,” Mr Rourke said.

“From a demand perspective, the market is experiencing a shift in active occupier cohorts. The third-party logistics sector, which has historically been a primary driver of large-format leasing activity, remains subdued as operators continue to absorb existing capacity and resist committing to additional space in an uncertain freight and consumer environment. In contrast, demand linked to the Data Centre sector and its broader supply chain has emerged as one of the most active sources of enquiry across the market,” Mr Rourke added.

Sydney
Sydney’s vacancy rate is 3.5%.

CBRE’s Head of Western Sydney Industrial & Logistics Moshe Greengarten said: “Sydney’s industrial vacancy rate has continued to trend upward, reflecting a more balanced leasing market after several years of exceptionally tight conditions. While 3PL activity remains subdued, demand has been supported by occupiers across a broader range of sectors, particularly construction-related businesses.

“Occupiers are increasingly prioritising operational efficiency, driving stronger demand for super-prime facilities with higher clearances, greater pallet density and stronger ESG credentials. Conversely, second-generation assets have become more difficult to lease as occupiers place greater emphasis on intra-logistics performance and total occupancy costs, with rising outgoings amplifying this trend.”

Melbourne 
Melbourne's vacancy rate is 4.7%.

CBRE Senior Director, Victoria, Tom Hayes said: “Occupiers are increasingly opting to renew rather than relocate, reflecting the gap between current economic rents and tenants’ perceived market value. At the same time, Melbourne’s tightly held institutional land ownership is expected to limit any meaningful decline in land values. As speculative supply moderates through 2027-28, vacancy is forecast to remain contained, with improving demand expected to underpin rental growth and support both renewal and relocation activity.”

Brisbane
Brisbane’s vacancy rate is 3.0%.

CBRE’s State Director for Queensland, Matthew Frazer-Ryan said: “The Brisbane industrial leasing and occupier market has demonstrated remarkable resilience despite significant domestic and global headwinds. While rising operating costs - particularly fuel prices, transport expenses and manufacturing input costs - have placed pressure on occupiers, demand has remained resilient across both mid-sized facilities and larger assets exceeding 10,000 sqm.

“We expect this positive momentum to continue through the remainder of 2026. The key factor likely to influence market conditions is the limited pipeline of speculative development. This shortage is expected to underpin rental stability, particularly for secondary grade assets, which may become the only viable option for occupiers requiring immediate accommodation. With current speculative projects nearing completion and no significant new developments commencing, the market is likely to face a gap in available supply over the next 12–18 months.”

Perth
Perth’s vacancy rate is 1.0%.

CBRE’s Senior Director, WA, Jarrad Grierson said:  “Perth’s industrial vacancy rate has decreased to 1.0% in the half year to July 2026. The limited stock available comprises a mix of backfill space created off the back of pre-lease activity, sub-lease accommodation plus some limited spec space.

“Gross take up for the last 12 months has been over 400,000 sqm which is more than double Perth’s 10-year average. Most recent tenant demand has largely come from the warehousing and logistics and e-commerce sectors. Subject to continued demand, we anticipate upward pressure on rents and ongoing supply constraints.”

Adelaide 

Adelaide’s vacancy rate is 2.0%.

CBRE’s State Director, SA, Paul McKay said: “The slight increase in Adelaide’s industrial vacancy from 1.8% to 2.0% is reflective of a shift to a more cautious occupier market in response to global uncertainty and consequent national economic challenges. Despite the increase, vacancy remains low, and there has been an increase in lease renewals due to limited availability of alternative accommodation.”