Australia’s industrial market is turning a corner, with demand improving, vacancy tightening for the first time in almost two years, and pricing stabilising as investment momentum rebuilds into 2026.
- All national Core markets either held steady or posted growth in Q4, reinforcing the resilience of industrial rents.
- Vacancy tightened to 4.33% in Q4, led by Brisbane and Sydney, signalling early rebalancing as absorption strengthened.
- Tenants continue to prioritise existing space (63.3% of Q4 activity), while pre‑leasing remains subdued (10.6%).
- Annual investment volumes held steady at $12.33B, with the market continuing to transact through tighter monetary conditions.
- Institutional buyers remained selective but meaningful (45% of Q4 activity), while private capital supported mid‑market liquidity.
Looking ahead, pricing stability and improving liquidity point to a stronger investment environment through 2026, with vacancy expected to hold around the mid‑4% range before improving in 2027.