Australian Logistics & Industrial Capital Markets Outlook 2025

LOGISTICS & INDUSTRIAL OUTLOOK 2025

OCCUPIER FUNDAMENTALS COMPARE FAVOURABLY Globally, vacancy rates have risen over the past two years as elevated levels of supply coincided with a normalisation of occupier demand. As a result, many major markets have vacancy rates now at or in excess of 7.0%, which has resulted in a slowdown in rental growth. For Australia, the make-up of supply has been diŠerent in that commitment levels on completion have been well above many other markets, which has capped the upswing in vacancy rates. OCCUPIER FUNDAMENTALS COMPARE FAVOURABLY

Despite th with a nati rental grow potential t

Q4 2024 Vacancy Rates by Market Q4 2024 Vacancy Rates by Market

2024 Prim

10.0%

9.7%

9.0%

8.6%

8.0%

8.3%

8.0%

7.6% 7.6%

7.0%

6.0%

5.9%

5.5%

5.0%

5.1%

4.7%

4.0%

3.0%

3.1%

2.8%

2.5%

2.0%

2.2% 2.2%

1.0%

0.0%

Perth

Dallas

Tokyo

Sydney

London

Chicago

Brisbane

Adelaide

New York

Singapore

Melbourne

Hong Kong

New Jersey

German Hubs

Inland Empire

Cushman & Wakefield

Source: Cushman & Wakefield Research

Globally, vacancy rates have risen over the past two years as elevated levels of supply coincided with a normalisation of occupier demand. As a result, many major markets have vacancy rates now at or in excess of 7.0%, which has resulted in a slowdown in rental growth. For Australia, the make-up of supply has been different in that commitment levels on completion have been well above many other markets, which has capped the upswing in vacancy rates.

Source: Cushman & Wakefield Research