Australian Industrial Horizons

22

LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

TAKE-UP & YEARS REMAINING Industrial land take-up across Perth has averaged approximately 60 hectares per annum over the past 10-years; however, there have been years where take-up levels have been closer to 90 hectares. Following a subdued 2020 and 2021, take-up volumes have increased since 2022 and reflects higher levels of speculative and pre-lease activity. In recent years, industrial land take-up has been strongest within the East submarket and stems from diminishing land supply in key estates such as the Roe Highway Logistics Park and Perth Airport. Similarly, land holdings from major institutions such as ESR (formally LOGOS-owned land) and Barings have been absorbed within the submarket. Land take-up levels have also been elevated in the South submarket, most of which has been underpinned by Dexus’ Jandakot Airport. Years Remaining Given the current ownership structure in Perth, which is substantially skewed to local privates, development activity centres around the pre lease market, as historically there has been limited speculative activity. As a result, take-up volumes have been more restricted when compared to the East Coast, while it has largely been contained to a select number of precincts. Since 2020, take-up volumes have averaged almost 50 hectares per annum. At a city-wide level, this suggests there are around 10 years of active land supply remaining; however, this doesn’t tell the full story, as availability in core precincts is extremely tight and competition for the remaining sites is high, resulting in fewer years remaining in these precincts.

Perth Industrial Land Take-up (hectares)

20 30 40 50 60 70 80 90 100

0 10

2014 2015 2016 2017

2018 2019 2020 2021

2022 2023 2024

10-Year Average

Perth Industrial Land Years Remaining

Active Land Supply

Total Land Supply

Land Remaining (hectares)

507

1,179

Average Annual Take-up – Base Case (hectares)

51

51

Years of Land Supply Remaining

10.0

23.3