Industrial take-up was elevated in Q1 2026, supported by deal momentum carrying over from year-end, indicating sustained occupier requirements translating into higher volumes of signed transactions early in the quarter period

• Take-up levels in Brisbane’s industrial market were elevated in Q1 2026, supported by deal momentum carrying over from year-end. Gross take-up was 70.7% higher than the previous quarter, with 23 deals completed compared with 15 in Q4 2025.
• This activity reflected occupier requirements that had extended into the start of the year, contributing to a higher volume of signed transactions early in the quarter. This outcome marked a strong quarter for take-up even when viewed in a broader historical context.

Supply delivery remains reliant on commitments

• Completions increased in Q1 2026, rising 34.9% from the previous quarter and sitting above historical completion averages.
• Absorption upon completion was 82.9% as developers shift away from speculative development. Stock delivery during the quarter was concentrated in the Southern precinct.

Yields unchanged as deal flow slows

• Prime Southern precinct net rents averaged AUD 164 per sq.m. p.a., with rent growth at 2.4% year-on-year or 0.5% quarter-on-quarter.
• Yields were unchanged at a range 5.00%-6.00%, or a midpoint of 5.50% (12.5 bps tightening from Q1 2025).

Outlook: Supply pipeline set to temper

• The supply pipeline is scarce, and this could mark a shift from recent periods of oversupply and set the stage for a potential shortage in new stock. With a high proportion of upcoming projects achieving elevated pre-commitment rates, vacancy rates are expected to tighten in super prime and prime stock.
• Leasing activity is likely to see a slowdown from current levels, as tenant grapple with uncertainty. Rental growth is anticipated to continue over the medium term, although at a more moderate pace compared to previous years. The compression cycle in yields has been delayed; we have revised previous forecasts and now envision this beginning in 2027.