Sydney Industrial Market Dynamic Q4 2024

Gross take-up levels across Australia increased for a third consecutive quarter in Q4 2024 as the wave of sub-lease offerings introduced to market earlier in the year slowly got reabsorbed. Continued speculative supply delivery in 2025 is expected to place upwards pressure on vacancy. However, the expectation of rate cuts within the first six months of the year will support a consumer spending recovery and improve occupier demand from retailers and logistics and warehousing users.

Incentives remain a key lever is leasing negotiations across most markets, which is slowing effective rental growth. However, investor demand remains robust with AUD 9.8 billion of industrial assets transacting over the last 12 months – 30.9% of which directed towards new development sites and industrial land acquisitions.