Rising rates may have slowed down the pace of deal-making in the short-term, but investor appetite, particularly new capital, is persistent, driven by the income-upside and strong underlying demand fundamentals, which are getting an extra boost from recovering supply-chains and the faster than expected rise in Australia’s population growth rates.
In our latest Industrial Shed Briefing Spotlight report, we provide an overview of recent macro, leasing demand and investment trends across Australia's major industrial and logistics markets.
Key takeaways from the report:
- Persistent low vacancy continues to benefit rental growth, but the pace is easing.
- c.1.03 million sqm leased on the east coast in Q2 – the busiest quarter since Q3-22.
- Development pipeline is still elevated, but timing on some projects has been pushed out.
- Structural tailwinds continue to propel investor appetite.
- Prospects for rate stability to unlock investment activity as new capital emerges.