20/11/2025
Industrial vacancies may have peaked
According to new research from Cushman & Wakefield, Australia’s logistics and industrial (L&I) market is at a key inflection point.
Tenant confidence is rebounding, but speculative development is falling fast, with a 46% drop in planned supply expected over the next two years. That means less space on the market just as 8% of total stock is due to expire, creating a sharp uplift in leasing activity.
National vacancy is tipped to tighten from 4.0% in early 2026 to just 2.5% by 2027, and further to 1.8% by 2030.
Rents are rising too, with prime net face growth forecast at 3.9% in 2026 and 2027, and a five-year CAGR of 4.8% through 2030. Incentives are expected to moderate as balance shifts back toward landlords.
“Demand is picking up while project viability is under pressure, and that’s where the market turns,” according to Cushman & Wakefield’s Luke Crawford.
If you’re in the market, the next 6-12 months may offer the last window of favourable terms before the next tightening cycle takes hold.