Logistics & Industrial Capital Markets 2024 Outlook Report

Figure 14. National Portfolio Transactions, 2018 - 2023 ($bn)

12 14 16 18 20

$12.0

$10.0

$8.0

$6.0

4 6 8 10

$4.0

$2.0

0 2

$0.0

2018

2019

2020

2021

2022

2023

Portfolio Volume ($b)

No. of Portfolios (RHS)

Source: Cushman & Wakefield

The lack of leasing options continues to support rental growth; however, the pace of growth has slowed Occupier demand remained healthy in 2023, with just over 3.5 million sqm of take-up recorded across the market (deals above 3,000 sqm). However, despite an increase in supply, vacancy rates in 2023 remained close to historic lows, which supported rental growth well above historical benchmarks.

As of Q4 2023, the national L&I vacancy rate measured 1.2%, and is well below the market equilibrium of 5.0%. As a result, national weighted prime rents grew by 21.7% in 2023, with the Sydney and Melbourne markets outperforming this. More recently, the pace of rental growth has eased with growth of 3.0% recorded in Q4 2023, down from the 5.1% quarterly average recorded since late 2021.

Figure 15. National L&I Vacancy Rate

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Jun-21

Mar-21

Sep-21

Dec-21

Jun-22

Jun-23

Mar-23

Mar-22

Jun-20

Sep-22

Dec-22

Sep-23

Dec-23

Sep-20

Dec-20

Source: Cushman & Wakefield

Based on buildings with a GLA >3,000 sqm

15 | CUSHMAN & WAKEFIELD | LOGISTICS & INDUSTRIAL