Examining Australia’s Logistics & Industrial Supply Pipeline
Strong market fundamentals have underpinned a large rise in warehouse supply within the Australian market in recent years. The landscape going forward is more complex, led by shifting market fundamentals and capital constraints for many developers.
Key Findings:
- While there is potential for 3.8 million sqm to be delivered in 2025 based on developer completion timeframes, our view is that this figure is overstated, and 20-25% of this is likely to be delayed.
- Even if all of this supply is delivered, it represents 135 facilities above 10,000 sqm, which is well below the 172 lease deals per annum struck for this size bracket over the past three years. With the national vacancy rate averaging just 2.0%, Australia is forecast to remain an undersupplied market, bookended by healthy pre-commitment levels.
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