Melbourne’s industrial vacancy rate falls

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The vacancy rate has fallen because the majority of new supply has reverted to demand led pre-commitments, as opposed to being speculatively built.

The vacancy rate has fallen because the majority of new supply has reverted to demand led pre-commitments, as opposed to being speculatively built.

Back-fill space from the new construction is yet to completely filter into the market and the pending motor vehicle manufacturing industry closures is likely to see this vacancy rate increase at the next survey in August 2016.

Goodman remains the major institutional owner, but only just over Charter Hall. The remaining three largest owners include Frasers Property, Growthpoint and Stockland.

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The study is the seventh of its kind conducted by Urbis, a leading national real estate advisory group. It comprises 740 buildings of over 10,000m² each totalling over 14 millions square metres of industrial floor space.

Of the 24 Prime/Modern building vacancies, 13 are located in the West, seven are in the South-East, three are in the North and one is in the East.

The study is the seventh of its kind conducted by Urbis, a leading national real estate advisory group. It comprises 740 buildings of over 10,000m² each totalling over 14 millions square metres of industrial floor space.

Other take outs from the study include:

• Vacancy by floor space in the major submarkets is spread between the West (42%), the South-East (32%) and the North (17%).
• The Prime/Modern vacancy rate is 4.5% whilst the Secondary/Tertiary vacancy rate is only 3.0% primarily as a result of owner occupier purchases.
• The average size of a vacant facility is just below 13,700m².
• The average size of a vacant facility in the North is approximately 15,500m², 14,000m² in the West and 13,000m² in the South East.
• The average size of a Prime/Modern vacant facility is approximately 14,250m² whilst only 12,800m2 for Secondary/Tertiary facilities.