29 March 2016
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Melbourne’s industrial vacancy rate has fallen to 3.8 per cent, hitting its lowest level since early 2013, a new survey shows.
Vacancy rates have fallen across key sectors because most new warehouses and sheds have been built for pre-existing tenants rather than being constructed on a speculative basis, Urbis’ Melbourne Industrial Vacancy Study shows.
“In February and August last year, Urbis recorded an industrial vacancy rate of 4.5 per cent and 4.75 per cent, respectively.
In February and August last year, Urbis recorded an industrial vacancy rate of 4.5 per cent and 4.75 per cent, respectively.
“The current vacancy of 3.8 per cent reflects a contraction in each of the northern, western and south-eastern sub-markets by between 0.8 per cent and 1.3 per cent, whilst the eastern and inner sub-markets remained stable,” Urbis director Shane Robb said.
New construction had not yet completely filtered into the market and the looming shutdown of Victoria’s motor vehicle manufacturing industry would cause vacancies to jump in the next survey, he said.
The level of foreign ownership in the industrial sector has grown considerably over six months, particularly with Frasers Property’s purchase of Australand and Ascenda’s purchase of the GIC/Australand JV and GIC portfolios.
Foreign ownership was still at a relatively low threshold when compared with the sector overall, hovering below 10 per cent of total stock surveyed, Urbis reported.
The survey focuses on buildings within metropolitan Melbourne that are 10,000 square metres or larger.