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Australia’s industrial market continued to rebalance in Q3. Existing stock captured more leasing activity, vacancy tightened and investment market depth improved, although difficult macro conditions continued to slow decision making.
- East Coast vacancy declined to 4.41%, while annual net absorption reached approximately 851,000 sqm, led by Brisbane and Melbourne.
- Activity in existing stock was much stronger than the headline leasing result suggests.
- Prime face rents were broadly stable, with quarterly growth concentrated in Perth Core.
- Investment volumes increased to $3.14 billion, with transactions below $50 million contributing 60% of national activity.
- Domestic capital has returned more actively to the sector, providing depth across individual assets and mid-market opportunities.
Industrial fundamentals remain comparatively resilient, supported by tighter vacancy and a narrower future supply pipeline. Higher funding costs will continue to reinforce pricing discipline, but improving market depth and greater clarity around the rate path should support leasing and investment activity.