Australia’s ‘world’s tightest’ industrial property market
Like Sydney, Ms J-Baleh said, Perth suffered from a lack of new supplies and “essentially non-existent” speculative development.
“The supply coming this year in Perth is already around 80 per cent pre-committed,” she added.
Melbourne recorded the smallest fall in vacancy rate from 1.3% to 1.1%, while Brisbane tightened from 2.3% to 1.4% and Adelaide from 1.6% to 0.9% .
With all capitals facing a “chronic undersupply” of warehouse space, super prime industrial rents (those for new state-of-the-art hangars) jumped 13% in the 12 months to June, according to CBRE.
Growth in super prime rents was most pronounced in Sydney at 23% year-on-year, followed by a 17% rise in Perth and 14% in Melbourne.
“We expect demand to continue to outstrip supply this year and into 2023, and we’re seeing rent growth outpacing CBRE Research forecasts,” said Cameron Grier, regional director for CBRE Industrial and Logistics in the Pacific. .
“Only the strongest occupants [leasing] alliances gain the right space.“
Added to the difficulties encountered by companies looking for storage space is the lack of speculative development and the high occupancy rate of pre-lettings on new constructions.
“Speculative developments make up just 33% of Australia’s pipeline footprint, compared to 76% in the US, 57% in the UK, 48% in Spain and 43% in Germany,” Ms J-Baleh said. . said.
A lack of supply, meant that net warehouse space absorption – occupied space minus vacated space – fell 40% to 1.4 million in the first half of 2022 compared to it a year ago.
Leases completed in the past month include global housewares company, The Decor Corporation, committing to a new 14,244 sq m distribution center and headquarters in Frasers Property Industrial’s Rubix Connect estate in Dandenong South in Melbourne.
“We continue to see prime industrial inventory in Melbourne’s southeast lease long before a shovel is ever in the ground,” said CBRE’s David Aiello who brokered the deal.