Occupier demand slows in Q2 2024

• Tenant demand for industrial space has reduced, in response to broader economic conditions. A total of 60,661 sqm was recorded in Q2 2024, 57% below the 10-year historical average (142,205 sqm).
• Wholesale occupiers contributed most significantly to take-up in the quarter (21,442 sqm). The majority of take-up was concentrated in the Southern precinct (37,950 sqm), in-line with previous quarters.

New industrial construction reaches completion in the Southern and Trade Coast precincts

• New completions totalled 123,917 sqm in Brisbane, which remained above the long-term 10 year average (88,477 sqm). Pre-commitment was elevated, at 80%. New stock was primarily delivered in the Southern precinct (94,770 sqm).
• A total of 398,124 sqm is currently under construction in Brisbane, expected to complete between now and 2026. Pre-commitment is at 56% overall and 81% in the Trade Coast, where the majority of active construction is located (188,399 sqm).

Prime rents continue to increase, particularly in Northern and Trade Coast precincts

• Average net face rents have increased in Northern and Trade Coast precincts, while growth in the Southern precinct has started to stabilise. Trade Coast rents have increased the most in Q2 2024, up 5.2% to AUD 189 per sqm per annum.
• In Q2 2024, transaction volumes totalled AUD 225.7 million, below the previous quarter and under the 10-year historical average of AUD 249.5 million.

Outlook: Occupier demand anticipated to stabilise, following accelerated growth throughout 2022-2023

• Gross take-up is likely to continue, albeit at a slower pace compared to prior years, given the current economic outlook.
• Rental growth is expected to slow through the remainder of the year as elevated levels of supply increases options for occupiers.