Australia’s industrial and logistics property market remains among the tightest globally, despite the national vacancy rate rising to 2.8 per cent in the first half of 2025, according to CBRE’s latest Industrial & Logistics Vacancy Report.
The report shows a gradual increase in vacancy across key Eastern Seaboard cities. Sydney rose to 2.4 per cent, Melbourne reached 4.1 per cent, and Brisbane increased to 3.2 per cent. Perth’s vacancy rate declined to 1.2 per cent, while Adelaide held steady at 1.6 per cent.
CBRE’s Head of Industrial & Logistics and Data Centre Research Australia, Sass Jalili, said the national figure remains below the 4 per cent equilibrium threshold. “Sydney and Brisbane have seen more gradual increases, while Melbourne continues to show a split market, with tight conditions in the Southeast and East and higher vacancies elsewhere,” Jalili said.
Sublease availability also shifted in the period, rising in Perth and Adelaide, while Sydney’s sublease share fell below 20 per cent of total vacancy. Jalili cited limited zoned land, e-commerce demand, and population growth as long-term drivers of demand.
Michael O’Neill, CBRE Regional Director Pacific Industrial & Logistics, noted an uptick in Q2 transaction activity driven by more competitive leasing terms. He said national vacancy rates are likely to remain under 4 per cent in the second half of 2025, particularly in infill markets.
City-level highlights show varied conditions. Sydney’s vacancy rose to 2.5 per cent, with the Inner Southwest leading the increase. Melbourne’s vacancy reached 4.3 per cent, with sublease space concentrated in the West. Brisbane rose to 3.2 per cent due to large speculative builds. Perth remains the tightest market nationally, while Adelaide saw a rise in sublease activity despite stable vacancy.
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