Australia Industrial and Logistics Figures Q1 2026

Key Points:

• Gross take-up moderated in 1Q26 to c.680,000 sqm.
• The development pipeline remains elevated with approximately 700,000 sqm delivered in 1Q26. The forward pipeline remains elevated on paper; however, delivery risk is increasing given pre-commitment requirements, construction costs and financing conditions.
• Close to 40% of the 2026-2027 supply pipeline is pre-committed.
• Incentive levels remain elevated across most markets, although face rental growth has begun to offset any decline in effective rents, with effective rents returning to growth in 1Q26.
• Leasing conditions continue to favour occupiers in the near term, with incentives expected to stabilise before gradually falling from late 2026.
• National super prime midpoint yields expended marginally in 1Q26 to 5.7%, reflecting higher interest rates and elevated bond yields.
• Investment sales for income producing assets (≥ AUD 10 million) in 1Q26 totaled close to AUD 1 billion, with Sydney accounting for most transaction volumes.