Here’s a rundown of Australian industrial leasing by region

Gross leasing in Outer West Sydney nearly doubled in the year to Q1.

According to a report from Dexus Research, Outer West Sydney gross industrial leasing was 300,000 sqm in the year to Q1 2024, nearly double the take-up of the previous period. However, the gross leasing for the latest quarter was less than half the previous quarter. 

“Of the take-up that did happen in the quarter, it mostly comprised Transport and Warehousing as well as Manufacturing tenants, with Humes and Allmach Systems (in the South West) involved in the provision of products to Sydney’s active infrastructure pipeline. Prime net face rents grew by 1.7% over the quarter and 8.2% over the year,” the report said.

Here’s more from Dexus Research:

West Melbourne 

Gross leasing in West Melbourne slowed in the 12 months to Q1 2024. However, take-up in the first quarter of 2024 was 10% higher than the previous quarter, with 100,000 sqm of leasing. Infrastructure activity was again a theme with leases to BTi Logistics and Apex (rail transport), Enersys (energy) and World Wire Cables. With a significant amount of supply due to enter the market through the year, we expect that take-up will increase, although rising vacancy will likely follow. While prime net face rents lifted by 17% in the year, incentives also rose, reducing the effective growth. 

Brisbane (South & Australian Trade Coast) 

Gross leasing in Brisbane in the twelve months to March 2024 was higher than pre-pandemic levels and above the 10 year average. The Trade Coast precinct is performing better than the south. Trade Coast saw a significant increase in leasing activity while Southern Brisbane take-up slowed. Leasing was driven by transport tenants. Prime net face rents grew by 5.9% in the Trade Coast in Q1 2024 and by 3.8% in Southern Brisbane. Growth is expected to taper as vacancy creeps upward through the year, and incentives rise further. 

Perth (East & South) 

Perth saw a substantial amount of gross take-up in the year to March 2024, and was well above the 10 year average for the third consecutive year. There was a significant increase in take-up in South Perth over the quarter, while East Perth take-up was slightly lower than the past two quarters. Demand was driven by engineering and logistics with Downer Group and Energy Logistix taking space South Perth, the latter at Jandakot. Prime net face rents have been flat in the past 12 months in all Perth markets, despite the improved demand.