New data has revealed Brisbane’s vacancy rate on logistics and industrial real estate has risen more than any other city in Australia.
CBRE’s latest National Vacancy Report on 4000 sqm-plus assets shows 277,091 sqm of new supply was delivered to the Brisbane market across the last two quarters.
That figure eclipsed the Sydney and Melbourne tallies of 271,988 sqm and 227,485 sqm.
CBRE’s data suggests occupiers have been quick to pounce on the new space, with Brisbane’s absorption figure at 192,626 sqm.
The report has calculated net absorption in the logistics sector for the first time. The metric documents the changes in total stock levels and vacant space.
Gus McConnell, CBRE Research Analyst, says a large influx of supply is partly due to developers reacting to favourable market conditions.
“Although we expect the total supply brought to the market to fall slightly in 2021, this demonstrates the confidence from investors in the Brisbane industrial market,” he says.
Sydney has the lowest vacancy rate in Australia, followed by Melbourne.
The national average of 2.24 per cent is down from 2.95 per cent last year.
Peter Turnbull, CBRE Queensland State Director, says the majority of supply in the last year has been taken up by e-commerce, transport and logistics groups.
“Investment volumes in Q1 2021 reached $216 million across nine transactions, up from $186 million a year earlier, as investors look for long-tenanted occupiers with an extended weighted average lease expiry,” Peter says.