Welcome to the latest Savills Industrial Market Quarter Time.
Savills Research has amalgamated the former Quarter Times and Briefing reports into a singular national report. This comprehensive report covers Australia’s industrial markets including quarter summary and outlook, market indicators, leasing & sales information as well as industrial market metrics.
Key highlights of this quarter's report include:
- Industrial and Logistics remain an attractive asset class for investors, driving the sector to all time low cap rate yields
- The asset class continues to benefit from densification and location infill as the population grows and gravitates towards infrastructure, despite benign economic and rental growth
- Capital is still attracted to the three main capital cities with circa $5.3 billion in asset transactions, resulting in a further 50bp in cap rate compression
- Despite cap rate yields now at 4.9% in Sydney’s West, 5.6% in Melbourne’s West and 5.9% in Brisbane’s Southside, the same growth is not being seen in rents with circa 2-3% growth, resulting in falling IRR’s to 6.5-7%
We recommend this report to you and welcome discussion on points of interest.