SPACE offers unparalleled insights into the current and future landscape of Australia's industrial property market.

In this edition, we delve into the evolving role of sale and leasebacks in shaping industrial real estate strategies. We analyse national trends in vacancy and rental growth rates, offering actionable insights to navigate the future of the industrial property market.

Additionally, we highlight current opportunities for lease and sale across the country, with a special section dedicated to Frasers Property's latest offerings.

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Key Themes

Sale and leasebacks

Tariffs effect on the Industrial property

Vacancy and rental growth

Data centres strategy

National market overview

Navigating the post-surge industrial landscape...

What's next?

Post-COVID, East Coast industrial leasing surged dramatically above pre-pandemic levels, driving vacancy below 2% and raising net prime rents by 30–60%. Throughout 2024, demand stabilised, easing rental growth and development pressures.

What does this mean for tenants and developers going forward?

What lies ahead for rental trends, property values, and development opportunities?

Effective rental growth is expected to remain subdued in the short term due to rising vacancies, with established areas seeing stronger growth and emerging areas offering more incentives to maintain face rents.

Key Contributors

Jennelle Wilson

Partner, Research & Consulting, QLD

Knight Frank Australia

Angus Klem

Partner, Head of Industrial Investments and Head of North Sydney

Knight Frank Australia

Important notice

© Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, funding organisations, corporate institutions and the public sector. All our clients recognise the need for expert independent advice customised to their specific needs. Important Notice © Knight Frank Australia Pty Ltd 2023 – This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank Australia Pty Ltd in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank Australia Pty Ltd to the form and content within which it appears.approval of Knight Frank Australia Pty Ltd to the form and content within which it appears.