Australian Industrial Horizons

LOGISTICS & INDUSTRIAL RESEARCH AUSTRALIAN SERIES

INDUSTRIAL HORIZONS EXAMINING AUSTRALIA’S INDUSTRIAL LAND SUPPLY PIPELINE

Q1 2025

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

INTRODUCTION

The Australian industrial land market has shown resilience over the past two years despite economic uncertainties. Land absorption volumes have remained solid, driven more recently by elevated levels of speculative development, and as a result, industrial land stocks have been reduced across all markets. The undersupply of land remains a real issue within the sector, hampered further by authority approval delays and an elongated servicing process. In 2024, land take-up levels have eased; however, in a number of states, this reflects the uncertainty in delivery timeframes given servicing and infrastructure challenges. Highlighting this has been the sharp drop in pre-lease transactions in 2024, which only accounted for 15% of lease deals nationally compared to the 2020-2023 annual average of 36%. Once these constraints are worked through and resolved, not only will the active land supply pipeline increase, so too will land take-up volumes. • Quantify how much vacant industrial zoned land remains across each capital city, including splits between active* and inactive supply. • Determine how many years of industrial zoned land supply remains, based on recent take-up trends. While overall land stocks may appear plentiful, the reality is that a large share of this land is unserviced or unlikely to be ready for development during the current cycle. Based on recent take-up trends, our analysis shows there are 5.0 years of active land supply remaining nationally. However, there remains a large share of active land stocks in private ownership, which will reduce this total to closer to 3.0 years given their inability to deliver developed stock into the market. The land supply issue that emerged in 2021 and 2022 has been somewhat masked over the past two years due to a softer economy. With a return to stronger economic conditions forecast for 2025, this issue will likely resurface. Further, while additional zoned land may be made available, the timeframe to service this land can be substantial. The purpose of this study was to:

Active Industrial Land Stocks by City

BRISBANE 942 ha

National 3,520 ha

PERTH 507 ha

SYDNEY 828 ha

ADELAIDE 166 ha

MELBOURNE 1,077 ha

* See page five for the definition of active land supply

LOGISTICS & INDUSTRIAL RESEARCH AUSTRALIAN SERIES

TABLE OF CONTENTS

01 02 03 04 05 06 07

National Overview

Sydney

Melbourne

Brisbane

Perth

Adelaide

Contact Information

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

STATE OF PLAY Current Industrial Land Indicators

PERTH

BRISBANE

Active Land Supply (ha)

507 ha

Active Land Supply (ha)

942 ha

Annual Average Take-up

51 ha

Annual Average Take-up

109 ha

Active Land Supply Remaining

10.0 years

Active Land Supply Remaining

8.7 years

BRISBANE

Land Values (1-5 ha)

$439/sqm

Land Values (1-5 ha)

$632/sqm

ADELAIDE

PERTH

SYDNEY

ADELAIDE

SYDNEY

MELBOURNE

Active Land Supply (ha)

166 ha

Active Land Supply (ha)

828 ha

Annual Average Take-up

67 ha

Annual Average Take-up

210 ha

Active Land Supply Remaining

2.5 years

Active Land Supply Remaining

3.9 years

Land Values (1-5 ha)

$495/sqm

Land Values (1-5 ha)

$1,867/sqm

MELBOURNE

Active Land Supply (ha)

1,077 ha

Annual Average Take-up

263 ha

Active Land Supply Remaining

4.1 years

Land Values (1-5 ha)

$857/sqm

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

CURRENT CAPACITY Active, or development ready land supply is limited across the country, which has supported land value rates at a time when yields have increased by up to 200 basis points

Australian Industrial Land Supply by Status (hectares)

Nationally, our analysis has identified just over 9,600 hectares of vacant industrial land supply, led by Sydney and Melbourne which collectively account for 63% of this total. However, in reality, a significant portion of this land is not considered active land supply, as it cannot support industrial development in the short term (within the next two years) due to constraints such as the need for infrastructure or other servicing requirements. Based on the assumptions highlighted below, we have identified 3,520 hectares of active land supply. This figure is gross and does not consider land that will be lost for transport corridors, riparian corridors, local roads, lot fragmentation and topography. In addition, a large share of this land is constrained by the current ownership structure, which will limit the ability of the sites to be developed in the future. Considering these constraints, it is estimated that active land supply owned by developers is closer to 2,400 hectares. Ultimately, this highlights the undersupply of development ready industrial land across the country. Population growth alone over the next decade will underpin demand for 3,200 – 4,000 hectares of land. While there is potential for additional land to be zoned during this period, this will prove more challenging given the current federal and state government focus on delivering more housing while markets like Sydney provide a limited scope of additional land supply beyond the Aerotropolis. Methodology/Definitions • Industrial land: To understand the quantum of industrial land supply, we analysed all vacant land that is appropriately zoned for industrial use. We then removed lots below one hectare (unless smaller lots were under one ownership) as lots below this range are not viable for development of scale. • Site viability: We then evaluated each individual vacant lot in order to remove sites that were considered undevelopable, which includes sites that had environmental constraints such as flooding or topography challenges which would make development unfeasible. The remaining sites were used as a baseline for our analysis • Active v inactive land supply: The remaining lots were then grouped into one of two categories – active or inactive supply. Active land supply are lots that are considered development ready as it is either currently serviced or likely to be serviced within the next two years. Inactive land supply represents the balance of land supply and forms part of the longer-term land pipeline.

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Sydney

Melbourne

Brisbane

Perth

Adelaide

Active Land Supply Inactive Land Supply

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LAND TAKE-UP At 700 hectares of land take-up per annum, this equates to approximately 3.5 million sqm of GLA with an end value of $11.8 billion that has been delivered each year since 2019.

In response to occupier demand for new facilities, pre-lease and speculative lease activity has been significant since 2020, ultimately leading to diminishing land availability. Institutional demand for land has been substantial as they adopt a build-to-core strategy, while more recently, owner occupiers, including data centre operators have become more active in the industrial land market. Between 2020 and 2023, industrial land take-up has averaged over 700 hectares per annum nationally, peaking at almost 900 hectares in 2022 where the Sydney and Melbourne markets saw a sharp upswing in take-up off the back of pre-commitment activity. During this period, pre-lease take-up accounted for 36% of all gross take-up nationally. Further, the average pre-lease size has grown 63% since pre pandemic averages, averaging close to 35,000 sqm between 2021 and 2023. With larger requirements on the rise, it has resulted in significantly compressed development periods in most cases, as one transaction can absorb 10 hectares or more of land. More recently, land take-up volumes have eased. While a pullback in economic activity has largely driven this as business expansion plans have slowed, it also reflects delivery constraints and timing uncertainty due to planning delays in many cities. The latter has resulted in tenant demand being directed to either stay put or relocate to existing facilities. Had development ready land been available in key markets, take-up volumes in 2023 and 2024 would have been higher.

Australian Industrial Land Take-Up by City (hectares)

0 100 200 300 400 500 600 700 800 900

2014

2015

2016

2017

2018

2019 2020 2021

2022

2023

2024

Sydney Melbourne Brisbane Perth Adelaide

Australia Industrial Land Years Remaining

Active Land Supply

Total Land Supply

Remaining Land Supply (hectares)

3,520

9,622

Average Annual Take-up – Base Case (hectares)

700

700

Years of Land Supply Remaining

5.0

13.8

C&W Sold | 123 Street Name, Suburb STA

SYDNEY OVERVIEW

20 Bernera Road, Prestons NSW Sold by David Hall & Fab Dalfonso

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SUPPLY & STATUS

Sydney Active Industrial Land Supply by Submarket

Across Sydney, there are approximately 2,850 hectares of vacant industrial zoned land (including a proportion of Enterprise zoned land within the Aerotropolis), most of which is concentrated within the Western Sydney Employment Area (WSEA) and the Aerotropolis precincts, the former of which includes the 2020 rezoned Mamre Road Precinct. Collectively, these two precincts represent over 80% of Sydney’s total industrial zoned land supply. Beyond this, vacant industrial land stocks are limited, particularly in infill markets, which has been the driver behind the uptick in multi-level warehouse development in these locations. In reality, not all of this land can be committed to by tenants given servicing and infrastructure constraints. As a result, our analysis shows there are just 828 hectares that have the ability to be developed within the next two years, while there is the potential for a further 25% of this land to be lost to internal roads, buffers, retarding basins and unusable portions etc. Land ownership also remains a significant barrier to development as fragmented private land holdings have capped the rate at which industrial development can occur. Our data shows that a significant proportion of the long-term land supply is fragmented in nature and privately owned by non-developers.

NORTH WEST 84 ha

NORTH 3 ha

OUTER WEST 626 ha

CENTRAL WEST 11 ha

WEST 25 ha

Sydney Industrial Land Status

2,849 ha Total Vacant Industrial Land Stocks

SOUTH WEST 79 ha

SOUTH 0 ha

2,021 ha Inactive Industrial Land Stocks

828 ha Active Industrial Land Stocks

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SUBMARKET STATE OF PLAY

Western Sydney Western Sydney accounts for almost all of Sydney’s total industrial land stocks, led by the Outer West submarket, the majority of which stems from the WSEA and the Aerotropolis precincts. The delivery of infrastructure and key services are the main impediments to bringing this supply online. Taking into consideration current services and the indicative timeframe to make this land available for development, active land supply is estimated at closer to 825 hectares. Within the Aerotropolis, approximately 1,500 hectares of zoned enterprise land is considered suitable for industrial use. This 1,500 hectares is mainly in the priority precincts of the Northern Gateway and Badgery’s Creek. For the Mamre Road Precinct, approximately 600 hectares of gross land remain, noting that a large share of estates is not being marketed, given the uncertainty in delivery timeframes. Beyond this, the balance of land supply in Western Sydney is scattered throughout the region and includes ESR’s Moorebank Intermodal Terminal, the Marsden Park Business Park and parcels within the Outer South West at Oran Park, Gregory Hills and Smeaton Grange. Land availability within central precincts of Western Sydney, including the Central West and Inner South West are limited which continues to maintain pressure on land values. South & North Sydney Land supply within the South Sydney submarket is extremely low, particularly in core precincts (Mascot, Botany, Banksmeadow, Matraville and Alexandria), and most new supply in the pipeline will stem from knock-down rebuilds of existing facilities. Highlighting this is the current pipeline of multi level warehousing as developers look to maximise floorspace given high land values. While almost 9.0 hectares of land supply have been identified in the submarket, all of this forms part of the longer term pipeline and includes 9-13 Mcpherson Street, Banksmeadow. Residential encroachment and a current focus on housing supply have the potential to reduce industrial land in this precinct further. For Sydney’s North, very few vacant land parcels remain, which, like South Sydney, has encouraged redevelopment of obsolete facilities as evidenced by developments planned in Macquarie Park and Frenchs Forest. Macquarie Park and Mount Kuring-Gai represent the markets with modest land supply, albeit this totals less than 10 hectares across the entire submarket.

Sydney Industrial Land Supply

Zoned Industrial Land

Mamre Road Precinct

Vacant Industrial Land Supply

Aerotropolis

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TAKE-UP & YEARS REMAINING

At 210 hectares of land take-up per annum between 2019 and 2023, this equates to approximately one million sqm of GLA with an end value of $4.6 billion that has been delivered each year on average.

Industrial land absorption levels in Sydney have averaged approximately 210 hectares per annum between 2019 and 2023, peaking at approximately 290 hectares in 2022. For 2024, just over 140 hectares of land were absorbed, reflecting the normalisation of demand and lower pre-commitment activity given the previously mentioned constraints. In recent years, take-up activity has been supported by increased data centre demand with approximately 20% of industrial land transactions in Sydney since 2020 being to such operators (for sites of two hectares or more). By submarket, the Outer West has accounted for 40% of all take-up since 2019, driven by Goodman’s Oakdale West estate and initial deals within the Mamre Road Precinct, including The Yards Estate. Take-up in the South West has also been solid (23% of Sydney’s land take-up since 2019), underpinned by the deals within the Moorebank Intermodal Terminal, Stockland’s Leppington Business Park and ESR’s Leppington Industry Park. Take-up has been more limited in the remaining submarkets and stems from the lack of land availability. Years Remaining Based on recent take-up trends, there are 3.9 years of active land supply remaining within the Sydney market while taking into consideration all vacant industrial-zoned land, it’s closer to 13.6 years. As highlighted earlier, a large share of land is owned by owners who are not able to make this land available for development. Considering this, it is estimated there to be less than 3.0 years of active land supply remaining.

Sydney Industrial Land Take-up (hectares)

350

300

250

200

150

100

50

0

2014 2015

2016 2017

2018

2019 2020 2021

2022 2023 2024

10-Year Average

Sydney Industrial Land Years Remaining

Active Land Supply

Total Land Supply

Land Remaining (hectares)

828

2,849

Average Annual Take-up – Base Case (hectares)

210

210

Years of Land Supply Remaining

3.9

13.6

MELBOURNE OVERVIEW 305-311 Greens Road Keysborough VIC | For Sale Marketed by Kosta Filinis & Gareth Jackson

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

SUPPLY & STATUS

Melbourne Active Industrial Land Supply by Submarket

Across Melbourne, there are 3,168 hectares of vacant industrial zoned land for lots above one hectare, with an average lot size of 10.5 hectares (skewed higher by a handful of larger lots). Most of this land exists within the North and West submarkets and is largely accommodated in precincts such as Truganina, Craigieburn, and Epping. While the majority of larger lots are located within the North and West submarkets, scale remains a challenge for institutional developers in the South East submarket, with 60% of lots in the area being sized below four hectares. From an active supply perspective, 1,077 hectares have the ability to be developed within the next two years, broadly split between the North and West submarkets. Assuming 25% of this area is lost to internal roads, buffers, retarding basins and unusable portions etc, this would reduce Melbourne’s active land supply pipeline to 815 hectares. Although the state government has been proactive in identifying growth corridors where some Precinct Structure Plans (PSPs) have been gazetted, the delivery of key infrastructure is required to facilitate development of the long term land supply pipeline. The limited additional supply within State Significant Precincts highlights the need to make undeveloped zoned land serviceable through streamlined planning controls and the delivery of road and rail links.

NORTH 456 ha

WEST 429 ha

EAST 6 ha

Melbourne Industrial Land Status

SOUTH EAST 186 ha

3,169 ha Total Vacant Industrial Land Stocks

2,091 ha Inactive Industrial Land Stocks

1,077 ha Active Industrial Land Stocks

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SUBMARKET STATE OF PLAY

West Land availability has reduced sharply in recent years given the surge in occupier demand. Currently, there are 428 hectares of active vacant land stocks in the West submarket, underpinned by Truganina, where major institutional groups such as Goodman, ESR, Dexus and Charter Hall have landholdings. Active land availability in infill markets is limited, accounting for 21% of total active land supply in the submarket, skewed by Laverton North and Altona. North The Melbourne Airport Business Park, Somerton Business Park, Essendon Fields and estates within Craigieburn underpin Melbourne’s North active supply pipeline, where approximately 450 hectares exist. The longer-term pipeline is supported by the Merrifield Business Park, the majority of the O'Herns Logistics Park and further estates within Craigieburn. South East & East Melbourne’s South East and East submarkets are the city’s most land-constrained markets, with less than 200 hectares of active land supply in the market. Active land stocks largely stem from the Dandenong South and Pakenham precincts and includes Salta’s Nexus Estate and Goodman’s Chifley Business Park at Moorabbin Airport, while land stocks at ESR’s Greenlink estate have fallen substantially given recent deal activity. Longer term, demand will be directed towards more periphery markets including Officer and Pakenham precincts. The South East will continue to be actively targeted by developers chasing obsolete secondary facilities that can be redeveloped, similar to ISPT’s plans at the IVECO site at Dandenong South.

Melbourne Industrial Land Supply

Zoned Industrial Land

Vacant Industrial Land Supply

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TAKE-UP & YEARS REMAINING

At 260 hectares of land take-up per annum between 2019 and 2023, this equates to approximately 1.3 million sqm of GLA with an end value of $3.5 billion that has been delivered each year on average.

Our estimates suggest that industrial land take-up in Melbourne has averaged approximately 260 hectares per annum between 2019 and 2023, peaking at approximately 325 hectares in 2022. In 2024, land take up fell to approximately 160 hectares, resulting from more limited active land stocks as major estates from several developers have been built out. Take-up has been most pronounced within the West submarket, averaging just over 150 hectares per annum since 2019, followed by the South East submarket at approximately 60 hectares per annum. Years Remaining Based on recent take-up trends, there are 4.1 years of active land supply remaining within the Melbourne market while taking into consideration all vacant industrial-zoned land, it’s closer to 12.1 years. As highlighted earlier, a large share of land is owned by owners who are not able to make this land available for development. Considering this, there are less than three years of active land supply remaining. The scope for future industrial land to be brought online is most pronounced in Melbourne and includes land to the North around the planned Beverage Intermodal Freight Terminal. However, the timing and quantum of industrial land within this area remains uncertain at this stage.

Melbourne Industrial Land Take-up (hectares)

350

300

250

200

150

100

50

0

2014 2015 2016 2017

2018 2019 2020 2021

2022 2023 2024

10-Year Average

Melbourne Industrial Land Years Remaining

Active Land Supply

Total Land Supply

Land Remaining (hectares)

1,077

3,169

Average Annual Take-up – Base Case (hectares)

263

263

Years of Land Supply Remaining

4.1

12.1

BRISBANE OVERVIEW 109-135 Boundary Road, North Lakes QLD Sold by Gary Hyland & Tony Iuliano

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SUPPLY & STATUS

Brisbane Active Industrial Land Supply by Submarket

Our analysis shows that there are 1,890 hectares of vacant industrial-zoned land across Brisbane, broadly split by the West, South and North submarkets, where each has in excess of 420 hectares of vacant industrial-zoned land. It is important to note that the majority of land in these submarkets is located in more periphery precincts and includes Bundamba, Swanbank, North Maclean and Elimbah. There exists very few vacant land opportunities in more infill markets, accounting for 16% of total vacant industrial zoned land (24% of active land supply). From a timing perspective, approximately 942 hectares of active land supply has been identified across the Brisbane market (land that is zoned and serviced now or is expected to be serviced within the next two years). The South submarket represents almost a third of the city’s active land supply, while the balance is broadly split between the remaining submarkets.

NORTH 163 ha

TRADE COAST 160 ha

Brisbane Industrial Land Status

West 186 ha

SOUTH 291 ha

1,890 ha Total Vacant Industrial Land Stocks

948 ha Inactive Industrial Land Stocks

942 ha Active Industrial Land Stocks

M1 CORRIDOR

142 ha

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SUBMARKET STATE OF PLAY Trade Coast

Brisbane Industrial Land Supply

The Trade Coast is Brisbane’s most land-constrained submarket, with just under 200 hectares of industrial-zoned land remaining in the precinct. While the bulk of this land is considered active, most of this stems from either the Port of Brisbane or Brisbane Airport. Both of these precincts are leasehold and are predominately only available on a pre-lease basis. Excluding these precincts, the average vacant lot measures just 2.2 hectares, which precludes larger-scale developments. North Precincts in the Outer North underpin the North submarket’s land supply and are led by locations such as Elimbah, Caboolture and North Lakes. Land availability closer to the CBD is very limited as most new supply is driven by the redevelopment of existing sites, as evidenced by Aliro’s recent development at Geebung. South Industrial land supply in the South submarket is underpinned by the North Maclean and Crestmead precincts where Charter Hall, Mapletree, GPT and other institutional groups have landholdings. Alternatively, land supply in more infill markets, such as Rocklea and Acacia Ridge, is more limited, while pockets, including Berrinba and Larapinta, have seen land supply being largely exhausted following recent take-up activity. West Like the South, land supply in the West is dominated by more fringe precincts including Bundamba and Swanbank. However, take-up has more recently been directed to these precincts as demand in more central precincts during recent years, such as Wacol and Richlands, have reduced land availability. M1 Corridor There exists almost 145 hectares of active land supply within the M1 Corridor, bolstered by Lot 1, Pacific Highway Coomera and remaining land within the Frasers Vantage Estate at Yatala. Beyond this, land supply is underpinned by lots to the East of the M1 Motorway within Stapylton or Ormeau; however, the current ownership structure remains a constraint to the development of much of this land.

Zoned Industrial Land

Vacant Industrial Land Supply

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

TAKE-UP & YEARS REMAINING

At 110 hectares of land take-up per annum between 2019 and 2023, this equates to approximately 550,000 sqm of GLA with an end value of $1.5 billion that has been delivered each year on average.

Brisbane Industrial Land Take-up (hectares)

Industrial land take-up in Brisbane has averaged almost 110 hectares per annum over the past five years; however, it peaked at 160 hectares in 2022, given the record level of pre-commitment activity. Reflecting more subdued levels of take in 2024, particularly from the larger end of the market, which drives the pre-commitment market, land take-up was reduced to around 70 hectares for the year. Take-up has been led by the South and West submarkets, as both have recorded take-up levels of more than 40 hectares per annum since 2019. Take-up in the remaining submarkets has been more limited and reflects a combination of limited land availability in core locations and the more passive ownership of land. Years Remaining Assuming similar levels of take-up going forward, this would imply there are 8.7 years of active land supply remaining while 17.4 years remain when looking at total land supply. However, in reality, take up levels have been capped due to the current ownership structure, as many parcels are owned by privates who are not active in the pre-lease market. Considering this, approximately 5.0 years of active land supply remains across the broader city and less than three years in more infill markets. We note, a change of ownership could quickly activate these sites.

100 120 140 160 180

0 20 40 60 80

2014 2015

2016 2017

2018 2019 2020 2021

2022 2023 2024

10-Year Average

Brisbane Industrial Land Years Remaining

Active Land Supply

Total Land Supply

Land Remaining (hectares)

942

1,890

Average Annual Take-up – Base Case (hectares)

109

109

Years of Land Supply Remaining

8.7

17.4

PERTH OVERVIEW

99 Gnangara Road, Wangara WA Sold by Ross Palframan & Andrew Fife

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SUPPLY & STATUS

Perth Active Industrial Land Supply by Submarket

Perth has 1,179 hectares of vacant industrial-zoned land across the city, 57% of which is accounted for by the South submarket. While overall land stocks are tightest within the North, the East is the most land-constrained market of active land supply, with very few opportunities remaining in core precincts such as Kewdale and Welshpool. This has been the catalyst behind continued land value growth in these precincts, despite elevated construction costs and yield expansion in recent years. Active land supply across Perth totals 507 hectares, again led by the South submarket, which accounts for 63% of this total. We note this is contained in a select number of larger lots, with seven parcels in the South accounting for over 70% of all vacant zoned industrial land in the submarket.

NORTH 106 ha

Perth Industrial Land Status

EAST 81 ha

1,179 ha Total Vacant Industrial Land Stocks

672 ha Inactive Industrial Land Stocks

507 ha Active Industrial Land Stocks

SOUTH 320 ha

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

SUBMARKET STATE OF PLAY

Perth Industrial Land Supply

East Industrial land availability is limited in the East submarket, particularly in the near term, with 81 hectares of active land supply. Active land supply is dominated by the Hazlemere and Kenwick precincts, which represent 83% of the supply in the submarket. Given recent leasing success, land supply within the Roe Highway Logistics Park is limited, while parcels immediately surrounding the estate will likely underpin the next wave of industrial development activity. The longer-term pipeline is dominated by parcels to the east of Kenwick; however, its development remains constrained by fragmented ownership and smaller lot sizes. North Land supply in the North submarket is underpinned by the Neerabup and Wangara precincts, which account for just over 90% of zoned industrial land supply. While 84% of lots in the submarket are sized below two hectares, this is less of an issue when compared to the East Coast cities as the sweet spot for demand/development is in the sub 6,000 sqm size bracket. At the larger end, the Neerabup precinct represents a significant share of active land supply in the northern submarket with the majority of this land controlled by Development WA. South The South submarket represents the bulk of Perth’s industrial land supply, underpinned by the Forrestdale and Jandakot precincts, which collectively account for 60% of the total land supply in the submarket. Estates within these precincts include the Catalpa Business Park, Dexus’ Ascent Industrial Park (Jandakot Airport Precinct) and the privately owned South Connect Logistics Estate adjoining the airport precinct.

Zoned Industrial Land

Vacant Industrial Land Supply

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

TAKE-UP & YEARS REMAINING

At 51 hectares of land take-up per annum between 2019 and 2023, this equates to approximately 250,000 sqm of GLA with an end value of $630 million that has been delivered each year on average.

Perth Industrial Land Take-up (hectares)

Industrial land take-up across Perth has averaged approximately 60 hectares per annum over the past 10 years (51 hectares per annum between 2019 and 2023); 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.

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

ADELAIDE OVERVIEW

1 Johansson Road, Wingfield SA Sold by Jay Nash & Hamish Crouch

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

SUPPLY & STATUS

Industrial land supply across Adelaide is currently limited with our analysis identifying 535 hectares of supply, having removed sites that were deemed not suitable for development given site constraints. Further, while some sites are currently vacant, they have been acquired by owner-occupiers and are no longer available. Over the short to medium term, the development pipeline will be dictated by the availability of development-ready land, which in Adelaide’s case is limited with just 166 hectares of active land supply. The majority of Adelaide’s land supply is located within the Outer North submarket and includes the key precincts of Direk, Edinburgh and Burton. While demand has been directed to these precincts, given land availability, it has also benefited greatly from infrastructure improvements across the North-South Corridor, including the Northern Connector project, which was completed in 2020. Precincts within the Inner North have also benefited from these connectivity improvements. While there is potential supply relief over the long term in the Outer North, this land is yet to be rezoned and is currently not serviced, meaning it is unlikely to be unavailable for development within the next five years.

Adelaide Active Industrial Land Supply by Submarket

OUTER NORTH 72 ha

INNER NORTH 49 ha

Adelaide Industrial Land Status

WEST 38 ha

535 ha Total Vacant Industrial Land Stocks

370 ha Inactive Industrial Land Stocks

166 ha Active Industrial Land Stocks

SOUTH 6.7 ha

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

SUPPLY & STATUS

Adelaide Industrial Land Supply

Outer North Adelaide’s Outer North represents 66% of the city’s total industrial land supply (352 hectares); however, active land supply stocks are more limited at just 72 hectares and is led by the Direk and Edinburgh precincts. Constraining active land supply in the submarket are the large land holdings owned by Renewal SA, some of which are unlikely to be available for development until later in the decade. Notably, this includes over 125 hectares at Edinburgh North. Inner North Active land supply within the Inner North currently totals almost 50 hectares, underpinned by the Port Adelaide precinct. Similar to the Outer North, significant parcels of vacant industrial zoned land is owned by Renewal SA, albeit some sites are currently being offered to the market for sale. Beyond this, there are pockets of active land supply within Wingfield and Gillman. Land availability in key precincts such as Regency Park is more constrained which is reflected in the continued growth in land values. West Adelaide’s West is highly land-constrained, reflective of the competing uses within the precinct including residential and the Adelaide Airport. As a result, our analysis shows 38 hectares of active land supply currently exists, most of which is controlled by Adelaide Airport within their Airport Junction and Catalyst Park estates. South Industrial land supply in the South submarket is highly fragmented and a large share of undeveloped land stocks fall below one hectare in size. The Lonsdale area underpins industrial land supply, while topography constraints on several sites make them prohibitive for development. The longer-term pipeline could potentially include a portion of Port Stanvac; however, it was recently announced that the majority of the site would be used for housing. At this stage, the amount of industrial land supply on this site remains unknown.

Zoned Industrial Land

Vacant Industrial Land Supply

26

LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

TAKE-UP & YEARS REMAINING

At 67 hectares of land take-up per annum between 2019 and 2023, this equates to approximately 330,000 sqm of GLA with an end value of $740 million that has been delivered each year on average.

Since 2019, industrial land take-up in Adelaide has averaged approximately 67 hectares per annum, most of which has occurred within the northern submarkets. Take-up was substantial between 2018 and 2020 and was the result of major pre-commitments, which included the Metcash at Gepps Cross and Drakes at Edinburgh North. Land take-up within the Inner North has been driven by activity within the Wingfield, Regency Park and Woodville North precincts and includes Fife Capital’s Wingfield Logistics Park and ISPT’s Charles Sturt Industrial Estate. For the Outer North, take-up has been most pronounced within Edinburgh and Direk. Take-up has been more limited in the South and reflects the more limited vacant land holdings. Years Remaining Based on average annual take-up volumes of 67 hectares per annum, this suggests that active land stocks will be exhausted within 2.5 years. While there is potential for additional zoned land to be added to the market within the Outer North and Outer South, the timing of this is uncertain as the majority of this land is not serviced.

Adelaide Industrial Land Take-up (hectares)

120

100

80

60

40

20

0

2014 2015 2016 2017 2018 2019 2020 2021

2022 2023 2024

10-Year Average

Adelaide Industrial Land Years Remaining

Active Land Supply

Total Land Supply

Land Remaining (hectares)

166

535

Average Annual Take-up – Base Case (hectares)

67

67

Years of Land Supply Remaining

2.5

7.9

TONY IULIANO International Director, Head of Logistics & Industrial – ANZ tony.iuliano@cushwake.com

LUKE CRAWFORD Head of Logistics & Industrial Research – AUS luke.crawford@cushwake.com

DAVID HALL National Director, Head of Brokerage Logistics & Industrial – ANZ david.j.hall@cushwake.com

This report provides a high-level overview of our National land expertise and database. We would welcome the opportunity to provide a more in-depth analysis via a presentation and/or a market tour. Please contact one of our experts above for a confidential discussion on how we can assist you.

About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com. Disclaimer The information in this material is general in nature and has been created by Cushman & Wakefield for information purposes only. It is not intended to be a complete description of the markets or developments to which it refers. The material uses information obtained from a variety of sources which Cushman & Wakefield believe to be reliable however, it has not verified all or any information and does not represent, warrant or guarantee its accuracy, adequacy or completeness. Any forecasts or other forward looking statements contained in this material may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct and are beyond the control of Cushman & Wakefield. Cushman & Wakefield is not responsible for any loss suffered as a result of or in relation to the use of this material. To the extent permitted by law, Cushman & Wakefield excludes any liability, including any liability for negligence, for any loss, including indirect or consequential damages arising from or in relation to the use of this material. All expressions of opinion included in this material are subject to change. All outlines are indicative and approximate only.

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