Here’s a rundown of Australian industrial demand by region

West Melbourne saw a higher take-up in 2024 compared to a year ago.

In a recent report, Dexus Research noted that industrial take-up in Australia in 2024 was a little higher than the previous year and slightly above pre-COVID levels. 

In Outer West Sydney alone, take-up increased over the 12 months to Q4 with 160,000sqm over the quarter and 494,000sqm over the year. A significant amount of this was sublease space taken up largely by manufacturing and transport companies.

The report added that Alspec, a manufacturing company, alongside COPE a transport and warehousing company, have preleased 40,000 and 39,000sqm respectively at the Alspec Industrial Business Park located in Orchard Hills. Nippon Express, a postal and courier service, took up 17,000sqm in Kemps Creek.

The vacancy rate is currently sitting at 3.2% (according to SA1 Property), which is up from 1.5% a year ago. Prime net face rents are sitting at $217/sqm.

Here’s more from Dexus Research:

West Melbourne

Take-up in West Melbourne in 2024 was higher than the previous year, but still below the two years prior. This demand was largely driven by manufacturing and logistics tenants. This quarter saw a large amount of take-up at 208,000sqm, making a total of 617,000sqm over the year. Essity, a global health and hygiene company, leased 40,000sqm and AGCO corporation, a manufacturer took up 30,000sqm, both in Truganina. Vacancy in Melbourne has been on the rise, and the West Melbourne vacancy rates are now at 3.9%, up from 2.2% a year ago. Prime net face rents are sitting at $139/sqm.

Brisbane (South and Australian Trade Coast)

Demand tapered through 2024 and was below the ten-year average. The Australian Trade Coast saw a large pull back on demand over the year, and the only space taken during the quarter was from TNS logistics who leased 3,400sqm in Hemmant. The vacancy rate in Southern Brisbane rose in the quarter and is now 4.4%, up from 3.5% a year ago, one of the highest in the nation. The ATC vacancy rate also lifted and is now 3.2%, up from 1.5% in 2023. Net face prime rents are $155/sqm for South Brisbane and $197/sqm in the ATC.

Perth (East & South)

Perth has seen strong demand over the past twelve months. In the East, 81,800sqm was taken up over the quarter, with Blue Star Logistics taking up 9,000sqm in Hazelmere. In South Perth, 10,800sqm was taken up in Jandakot, one of the tenancies being Jaycar, a motor vehicle retailer, who leased 5,800sqm. Vacancy rates have remained quite low, due to the higher demand, but still increased slightly over the quarter. Prime net face rents are currently $145/sqm in East Perth and $135/sqm in South Perth.

Note: Vacancy data for all markets is from SA1 property