Australia Industrial and Logistics Figures Q3 2025

Key Points:

• Gross take-up in 3Q25 was the lowest in 12 months, however the CY2025 is on track to supersede last year’s level – supported by strong leasing activity in the Sydney market.
• The 2025 supply pipeline is expected to reach 27% above the 10-year long-run average of 1.9 million sqm. 
• Just over one-third of the 2026 and 2027 supply is pre-committed, with the share of speculative developments at around 60%.
• Upward movement in Incentive levels across most markets continue to impede on net effective rent growth, which is now in negative territory. We expect incentives will stabilise within 1H26, with most markets forecast to record falling incentives post-2026.
• The national average midpoint yield for super prime grade assets has marginally compressed and stands at 5.7%. Yield compression was recorded for all markets except in Melbourne. 
• Investment sales for income producing assets (≥ AUD 10 million) for 2025YTD totaled around AUD 7 billion – reaching the long-run average.