Adelaide Industrial and Logistics Figures Q1 2025

Key Points:

• Gross take-up of c.43,600 sqm was recorded during 1Q25. The rolling 12-month gross take-up totals c.135,400 sqm - below the 10-year annual average of c.150,000 sqm.
• There was c.27,500 sqm of new industrial stock added over the quarter. The rolling 12-month supply totals c.85,200 - slightly below the 10-year average of c.92,000 sqm.
• The 2025 and 2026 development pipeline is forecast to total above the 10-year average; however, the pre-commitment rate is strong at close to 50%.
• The average vacancy rate for the market has increased slightly to 1.6% (as at 2H24).
• Net face rents remained stable across all asset grades. Super prime net face rents have increased by 4.9% y-o-y to an average of AUD 149/sqm. Average super prime incentives have increased to 12% from 10% 12 months ago.
• Constrained industrial land supply and owner occupier demand in Adelaide’s core industrial precincts has driven land values, with 0.25ha lots increasing by 21% y-o-y to an average of AUD 900/sqm and 1.6ha lots increasing by 17.6% y-o-y to an average of AUD 594/sqm.
•  Super prime midpoint yields remained stable q-o-q and sits at 6.2%.