Prime industrial rents surged by double digits in most capital city markets in 2021 as tenants were pushed to compete for the small amount of available space on the market.

According to JLL, the highest prime effective rental increases occurred in Perth (up 14.6 percent), Melbourne (14 percent) and Adelaide (13 percent) over 2021.

In the secondary market, effective rents rose 16 percent in Brisbane and Melbourne and 10 percent in Sydney.

Prime Rents Surge Across the Country

Around the country, a record 4.4 million square metres of warehouse space was taken up in 2021. This is a 52 percent rise on the 2.9 million square metres taken up in 2020.

The data from JLL shows that prime industrial rents increased by more than 10 percent in most capital city markets, fuelled by the acceleration of online retailing and supply chain disruptions.

JLL believe the completion of 1.3 million square metres of new logistics facilities in the next six months will ease pressure on companies needing warehouse space and create a more normalised rental market. Two-thirds of this new supply is already accounted for in leasing pre-commitments.

Fourth-quarter 2021 figures from JLL show 877,200 square metres of space was leased over the last three months of the year. The majority of this activity was in Melbourne (39 per cent) and Sydney (33 percent).

Last year, JLL says 1.47 million square metres of new space was developed nationally, which was in line with the 10-year annual average. The full-year gross take-up total (4.4 million square metres) was 82 percent higher than the long-term annual average.

JLL still expects above-average growth in the major markets in 2022 with many owner-occupiers requiring immediate access to more space.

By Published On: February 5, 2022Categories: Fixon Homes0 CommentsTags: