QUARTERLY UPDATE – Q1 2025
Industrial Property Market Snapshot
Australia & New Zealand
National Industrial Property Market Overview
Australia & New Zealand Q1 2025
WESTERN AUSTRALIA
• Rental - Stable to marginal increase in mid markets
• Incentives - Stable but increasing
• Land Supply - Constrained development ready land
• Building Supply - New stock emerging
• Demand - Low demand above 5,000sqm
QUEENSLAND
• Rental - Growth stabilising
• Incentives - Increasing in West & South, stable in Tradecoast, North & Yatala
• Land Supply - Constrained in all markets
• Building Supply - Speculative supply increasing
• Demand - Increasing activity sub 10,000sqm, stable levels above
NEW SOUTH WALES
• Rental - Stabilising
• Incentives - Rising in outer West, stable in infill locations
• Land Supply - Constrained
• Building Supply - Substantial supply of speculative product
• Demand - Slowing and dominated by larger users
SOUTH AUSTRALIA
• Rental - Increasing steadily
• Incentives - Stable to decreasing
• Land Supply - Low
• Building Supply - Very little if any speculative contruction
• Demand - Strong in mid markets under 6,000sqm, low over 10,000sqm
VICTORIA
• Rental - Stabilising (increase 2% YOY average)
• Incentives - Stable in East, rising in West
• Land Supply - Constrained development-ready land
• Building Supply - Limited new speculative builds
• Demand - Slowing and dominated by larger users
Data in the following pages is based on industrial buildings > 5,000sqm
NEW ZEALAND
• Rental - Stable
• Incentives - Increasing due to limited demand
• Land Supply - Constrained
• Building Supply - Increase in leasing space
• Demand - Soft
Prime: Buildings less than 10 years old with internal clearances at or above 13.7m. Buildings showcase design excellence offering ESFR sprinklers, a combination of docks/on-grade doors and sufficient truck articulation for loading/unloading.
Secondary: Buildings generally older than 10 years old but still functional with internal clearances up to 12.6m at the ridge. Buildings typically don’t have high sustainability ratings and may have limitations with warehouse access (no. docks/ on grade doors) and restricted heavy vehicle maneuverability on site.
Victoria
Melbourne Property Market Overview
*Key industrial suburbs only listed
WEST
• Altona
• Truganina
• Laverton
• Deer Park
• Tarneit
NORTH SOUTH EAST
• Tullamarine/Melbourne Airport
• Epping
• Campbellfield
• Somerton
• Craigieburn
• Mickleham
• Dandenong South
• Cranbourne West
• Keysborough
• Mentone
• Clayton
MELBOURNE
Industrial Market Commentary
Q1 2025
Foreign Owner
Surcharge continues to be a contentious issue
Data Centres paying premium to institutions for large sites
Take-up returning to historical averages, pointing to a ‘normalised market’
Prime facilities being preferred RBA rate cut leads to improved sentiment
Recent Property Transactions
Location: Melbourne Airport
Building Area: 18,573sqm
New South Wales
Sydney Property Market Overview
*Key industrial suburbs only listed
NORTH WEST
• Marsden Park
• Seven Hills
• Glendenning
OUTER WEST
• Wetherill Park
• Eastern Creek
• Kemps Creek
INNER WEST
• Homebush
• Chullora
• Silverwater
SYDNEY
OUTER SOUTH WEST
• Ingleburn
• Minto
• Smeaton Grange
SOUTH WEST
• Milperra
• Prestons
• Moorebank
SOUTH
• Alexandria
• Mascot
• Matraville
Industrial Market Commentary
Incentives remain high as owners compete to secure quality tenants
Net face rents stable in most markets, rising in South Sydney and other infill locations
Land values hold steady, averaging $1,500/sqm in Western Sydney
Leasing demand remains patchy with soft economic conditions resulting in caution
Vacancy rises to 2.8% with several spec development completions
Outgoings continue to increase at a slower rate
Recent Property Transactions
Queensland
Brisbane Property Market Overview
*Key industrial suburbs only listed
*Logan Motorway Corridor includes Heathwood, Larapinta, Berrinba, Parkinson, Meadowbrook, Kingston
WEST
• Wacol
• Carole Park
• Redbank
• Bundamba
• Swanbank
NORTH
• Banyo
• Geebung
• Northgate
• Brendale
• North Lakes
TRADE COAST
• Eagle Farm
• Brisbane Airport
• Pinkenba
• Murarrie
• Port of Brisbane
SOUTH & LOGAN
• Acacia Ridge
• Archerfield
• Willawong
• Logan Motorway Corridor*
• Crestmead
YATALA
• Yatala
• Stapylton
• Ormeau
BRISBANE
Industrial Market Commentary
Q1 2025
Leasing demand has continued to increase during Q1 2025
Restricted land supply in central markets pushing development further out
Incentives drifting upwards for renewals and new leases
Construction costs set to increase in H2 2025 with Olympics infrastructure pipeline
Recent Property Transactions
South Australia
Adelaide Property Market Overview
*Key industrial suburbs only listed
OUTER NORTH
• Edinburgh
• Direk
• Regency Park
• Wingfield
• Pooraka INNER NORTH
INNER WEST
• Adelaide Airport
• Mile End
• Torrensville
• Edwardstown
• Glandore
• St Marys INNER SOUTH
OUTER SOUTH
• Lonsdale
Industrial Market Commentary
Q1 2025
Leasing demand below long term average through Q1
Industrial vacancy increasing slightly this quarter to 1.8%
Demand for greenfield & pre-lease sites improving
Slight rent growth across North & West markets
Pre-lease rents showing growth
Constraint of quality backfill space
Recent Property Transactions
Designed,
Location: Edinburgh, South Australia
Building Area: 8,920sqm
Western Australia
Perth Property Market Overview
*Key industrial suburbs only listed
NORTH
• Wangara
• Balcatta
• Malaga
CORE
• Perth & Jandakot Airport
• Kewdale
• Welshpool
• Bibra Lake
EAST
• Forrestdale
• Brookdale
SOUTH
• Henderson
• East Rockingham
PERTH
Industrial Market Commentary
Q1 2025
Tenancies above 10,000sqm account for 80% of vacancy
Sporadic demand led by transport, logistics, and mining/resources
Modest rent growth, particularly in the Eastern market
72% of projects are precommitted
Vacancy has remained stable across the quarter
Incentived moderately increased in Q1 2025
Recent Property Transactions
Industrial Market Commentary
Q1 2025
Landlord/developer expectations remain fixed
Rise in off-market listings as tenants look to sub-lease whilst limiting impact on trading
Economic conditions leading occupiers to act with caution
Limited land supply in core markets
Low supply & moderate demand seeing restrained rental growth
Yields holding instead of increasing on the back of interest rate cuts
*NZ typically itemises rents for warehouse, office, canopy, hardstand, yard and parking. Above rents are normalized to reflect overall GLA, as per AU methodology.
Our team of Property Experts across ANZ
Dom Sorbara
Tracy
Justin Fried
Stefanie Frawley
Daniel Kelly
Kerry Widjaja
Nick Greenwell
My Tran
George Linn
Aishwarya Reddy
Daniel
Mary Farrelly
Knowles
Abbey Jones
Portfolio Management Services
Our unique integrated property portfolio service offering allows us to assist with…
Rental
• Rent review
• Rental audits
• Benchmarking
Property Negotiations
• New and renewed leases
• Make Goods
• Surrender and assignments
• Sale of freehold sites
Outgoings
• Reviews and reconciliations
• Identify cost saving opportunities
Building & Compliance
• Repairs and maintenance responsibilities and negotiations
Centralised Platform
• Capture critical dates
• Document repository
In addition to undertaking complete portfolio management services, our team has recently completed additional services for clients including:
• Lease renewal
• Renegotiating lease terms
• Surrender of Lease
• Outgoings Audits
• Make Good negotiations
• Market Rent Review & Analytics
• Lease Audit
• Property Review & Advice
• Stay vs Go Analysis
Construction Project Management
Managing your construction of an industrial warehouse project, from standard facilities through to automated, purpose-built distribution centers.
Working with hundreds of clients in your shoes, we’ve found that a lack of in-house expertise to navigate property procurement and construction journeys, can hinder expansion.
Through our team of industry specialists with end-to-end capabilities, we support this process, ensuring certainty from the business case, through to project delivery.
End-to-end Support
Know your costs
Develop a robust base building to avoid variations and unforeseen costs during construction.
Timeline control
Delivery timeline certainty will ensure clarity on transition timeframe and coordination with operations.
Early access
Early access to commence operational fit-out to provide financial benefit to minimize ongoing rental payments.
Ensure optimum quality
Quality of the build will ensure longevity in the asset for the term of the lease.
Indicative Construction Costs
All below figures are based on a generic 13.7m high warehouse shell including high level services
When facilities need to be upgraded or new facilities need to be constructed, we are here to support and add value to the process.
The latest construction rates are below for your reference, sourced from across our current projects. We can support in any early feasibility works that you may have to ensure that your next project achieves the full benefit to optimise your operations.
Case Study The Southern Hemisphere’s largest automated distribution centre.
TMX undertook an end-to-end process for Coles, including:
• Developing a detailed technical design document and architectural plans.
• Property procurement facilitated through a developer tender and selection process.
• Negotiation of Agreement for Lease
• Complete project management including automation
Construction Project Management Team
We have a team of experts in Development and Project Services across ANZ
Angus Perry
Director
499 464 213
Nick Ingleby VIC Director
Paul O’Donnell
449 538 692 Ben Kilby
Charlotte Arnold
Director +61 477 763 090 Adam Demetriou
410 410 911
Kesty Bindya
Rulla Haifa
Brett Nelson
434 555 663
El-leissy
Rachelle
Nour
Supply Chain Solutions
Addressing challenges at all stages of your digital and physical supply chain.
Supply Chain Strategy
Take a three-sixty-degree view of your supply chain.
Freight & Logistics
Transport your goods from supplier to end customer in the most efficient way.
Advanced Manufacturing
Create value by systematically eliminating waste and inefficiency.
Network Design DC Design & Optimisation
Improve the flow of your products, from source to end consumer.
Merchandise Planning
Carefully curated product ranges, and accurate demand and fulfilment plans.
Design your warehouse solution for now, and in the future.
Program Management
Equip your business with systems to support future growth.
Investment Feasibility
Market-based research customized for your needs.
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