Australia Industrial & Logistics Vacancy Report H1 2024

The national vacancy rate has increased to 1.9% for H1 2024, with upward movement recorded for most major markets across Australia. This rate is still the lowest level globally. 
 
We are witnessing a rise in the vacancy rate across most cities as demand normalises and greater sub-lease space is being added to the market. Despite the rise in space availability, we still do not expect to see the national average vacancy rate to surpass 4% in 2024.

Super prime grade stock is still being readily absorbed in the market at strong rental levels, and we do not anticipate demand for good quality assets in core locations to fall.
 
As predicted in 2023, we are seeing the bifurcation of rental growth performance over 1H24, and this will continue over the next 12-18 months. The bifurcation in vacancy levels, by precinct, is also beginning to emerge.
 
Over the medium to long term, Australia’s supply of serviced industrial zoned land will remain constrained, and this will continue to play a role in a limited development supply pipeline. Coupled with this, demand will be driven by growth in Australia’s net exports, strong population growth, and expanding e-commerce sector which is attracting offshore/new entrants into the market.
 
Our Industrial & Logistics Vacancy Report for the first half of 2024 highlights the current vacancy rate by city and by precinct, as well as the historic trend. The Report delves into the net absorption of floorspace, and associated rental growth trend we are witnessing.