Tight Vacancy Rates To Drive Industrial Property In 2023
Record low vacancy rates across the industrial property sector will continue to put upward pressure on rents, according to a new CBRE report.
The CBRE report said that industrial rents are expected to rise by more than 5 per cent next year, with Sydney experiencing a spike of more than 11 per cent.
Across Sydney, industrial rents rose 38 per cent this year to $200 per square metre with the vacancy rate falling to just 0.2 per cent.
CBRE’s head of Industrial and Logistics Research Australia, Sass J-Baleh, said about 4.6 million square metres of warehousing is due to be built over the next two years, with half already pre-committed.
“We expect that even if demand weakens significantly in 2023, there is still not enough supply to satisfy space requirements from major occupiers that are setting up their activities and supply chains for the long-term servicing of the Australian population,” Sass J-Baleh said.