How much new industrial supply is in the pipeline for Melbourne?

In the West precinct alone, 289,900 sqm of stock could be delivered in 2Q22.

A total of 284,610 sqm of new industrial supply was completed in Melbourne in the first quarter of 2022, representing a 5.2% q-o-q increase.

JLL says disruptions related to the Omicron variant in early 2022 has pushed out the delivery of many projects, with 381,860 sqm now expected to complete in 2Q22. Despite these disruptions, delivered projects in 1Q22 remained well above the 10-year quarterly average of 129,410 sqm.

Eighteen total projects reached completion in 1Q22, with 70% of space being pre-committed prior to completion. Completions were balanced across the precincts.

Here’s more from JLL:

In the West precinct, 6 total projects reached completion in 1Q22, adding 99,310 sqm of stock to the precinct. This figure was 40% higher than the 10-year quarterly average (70,940 sqm), however represented a substantial decrease from last quarter’s completions of 208,430 sqm. A total of 289,900 sqm of stock is expected to be delivered in 2Q22, which may indicate that the subdued stock delivery this quarter is a result of COVID related disruptions pushing out the completion of projects. For the remainder of 2022, the West precinct is expected to deliver 462,246 sqm of stock.

Seven projects reached completion in the South East precinct for 1Q22, delivering a total of 99,970 sqm of stock to the precinct. This represented a dramatic increase relative to the previous quarter, where completions totalled 24,060 sqm. These figures are expected to balance, with 74,560 sqm due to be delivered in 2Q22. For the remainder of the calendar year, the South East is expected to deliver 324,910 sqm of stock, which would be significantly higher than the current 10-year average of 137,290 sqm.

In the North precinct, relative supply remained subdued, delivering 85,340 sqm of stock. As is the trend across Melbourne, this figure was much higher than the 10-year quarterly average of 23,430 sqm. Relatively low levels of stock delivery are expected for the North precinct throughout 2022, with only 98,490 sqm expected to be delivered for the remainder of 2022.

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