Australia Industrial and Logistics Figures Q2 2025

Key Points:

• Australia’s vacancy rate increased from 2.5% and now averages 2.8% (as at 1H25) - remaining one of the lowest globally.
• Gross take-up in 2Q25 was 8% higher than what was recorded in 1Q25, with Sydney contributing to the highest share of floorspace leased.
• The 2025 supply pipeline is expected to reach 27% above the long-run average of 1.9 million sqm.
• Around 50% of the new supply expected to complete in 2H25 is currently pre-committed.  
• Incentives moved up marginally over the quarter, as did net effective rent growth (+0.1%).
• The national average midpoint yield for super prime grade assets has marginally compressed and stands at 5.85%. Yield compression was recorded only within the Sydney market.
• Investment sales for income producing assets (≥ AUD 10 million) for 2025YTD totaled around AUD 3.7 billion.