Industrial Sector: Moving Strong With No Signs of Slowing With Jamie Davey

The introduction of lockdowns and border closures may have negatively impacted some sectors, but it has supercharged industrial and logistic property markets.

The recent surge in online retail activity has led to a demand for storage and distribution facilities throughout Australia. During the first quarter of this year logistic assets throughout the Asia Pacific region increased 26% and continues to rise. Industrial property vacancy rates fell 23% during the second quarter of 2021, which has been the largest decline since 2010. This decrease in vacancy rates has led to a supply shortage, which in turn has led to an increase of rental rates for quality warehouse and distribution facilities throughout Australia.

It’s been said that the east coast of Australia has been the largest beneficiary of this industrial upswing with a recorded 2.2 million square metres of new facilities currently underway to cater for both the investor and leasing markets. If demand continues to increase, it will maintain a strong pressure on vacancies and if it manages to outpace building supply the rents will also continue to rise.