Adelaide industrial rents up 4.4% in Q2

Gross takeup grew 82.2% during the quarter.

According to JLL, average prime existing rents in Adelaide’s industrial market increased between 1.2% and 4.4% q-o-q across most precincts.

Prime midpoint yields in all precincts were unchanged in the quarter. There were two major transactions recorded over the quarter, totalling AUD 39.0 million.

Here's more from JLL:

Occupier demand rebounds in 2Q22

Leasing activity has accelerated over the quarter. Gross take-up volumes have increased by 82.2%.

There were five major occupier moves (>3,000 sqm) recorded, totalling 34,600 sqm.

Average prime rents increase as demand outpaces supply

There were three completions recorded over the quarter, totalling 26,200 sqm.

An additional 49,480 sqm of industrial supply is currently under construction and expected to complete in 2022.

Outlook: Adelaide industrial yields have now reached a cyclical low

Occupier demand continues to outpace supply. However, business confidence is expected to be negatively impacted by the current economic environment, which may result in a pause in expansionary industrial activity over the balance of 2022.

Investment demand is expected to slow as monetary policy tightens and cost of debt increases. However, the defensive investment characteristics presented in well-leased, modern facilities are still likely to be attractive in the short term.