Our Eastern Seaboard Industrial Vacancy Report for Q2 2020 is now available. The report provides industrial vacancy rates for buildings over 10,000m2 across Brisbane, Melbourne and Sydney.
Overall, we’re seeing vacancy rates starting to creep up, mostly on the back of a large pipeline of new developments a number of which are speculative. The vacancy sits at 2.9% in Melbourne, 3.7% in Sydney and 4.7% in Brisbane.
Covid-19 has to date resulted in a slight increase in the overall vacancy rate over the past quarter. At the same time it has also led to some proposed speculative developments being paused which should limit the continued expansion of vacancy at least in the short term.
Melbourne’s vacancy will certainly grow in Q3 due to completion of the circa 100,000m2 Kaufland building which has no occupier, likely to push the northern vacancy towards 10%.
Pre-commitment demand, as well as short term/overflow demand, from major corporates, has returned which is certainly seen as a positive to contain vacancies going forward. E-commerce and its recent rate of growth continue to help drive overall demand and the Industrial Sector is certainly seen as one of the greatest short and longer term opportunity.
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