Short on time? Here’s what industrial tenants need to know - fast.
Sydney: Vacancy rose to 3.0% as new supply and subleases (25% of stock) hit the market. Incentives climbed to 14.3% for prime and 17.5% for secondary, softening effective rents and shifting conditions in favour of tenants. Most deals fall in the 3,000-10,000 sqm range, led by logistics, food, and retail. South Sydney remains tight and costly, pushing demand to outer precincts. Areas near Western Sydney Airport and Moorebank are gaining traction for their transport links and long-term value.
Melbourne: Melbourne’s industrial market is shifting. Vacancy average sits at 3.1% at the end of H1 2025, with outer precincts like the North (5.3%) and West (3.7%) offering more space. Subleases now make up 18% of total vacancy, and 45% of 2025's pipeline remains uncommitted - giving tenants more choice and flexibility. Incentives are also elevated, reaching up to 30% in outer markets. For tenants open to location or early commitment, there’s real opportunity to secure better terms and future-ready space.
Jump to Melbourne for more info.
Brisbane: Brisbane is offering tenants more breathing room. Vacancy hit 4.2% in Q2 2025 (the highest since 2020) while incentives rose to 10-15%, softening effective rents. Supply is slowing, backfill space is rising, and subleases offer flexible short-term options. Leasing is more cautious, but 350,000 sqm of take-up in H1 and easing construction costs mean now’s a good time to negotiate - especially in the South (6.7% vacancy) and West (3.9%).
Jump to Brisbane for more info.
Sydney’s industrial vacancy rate rose to 3.0% in Q2 2025, up from 2.8% in Q1 and 2.5% in Q4 2024. While still historically low, this marks the second consecutive quarter of softening and reflects a slow return to more balanced market conditions. The rise was driven by increases in the South (+1.1%), West (+1%), North (+0.3%), and South West (+0.1%). These were slightly offset by tightening in the Outer West and Central West, each down 0.2%, suggesting leasing momentum in core and growth corridors.
The Outer West remains the most supplied market at 4.7%, influenced by recent completions and lingering subleases, including the ~75,000 sqm Eastern Creek facility. Inner metro markets like the North (0.6%) and Central West (2.2%) remain tight, with few new projects and consistent demand.
Tenant Takeaway: Make use of increased vacancy and sublease availability to explore better-value spaces with quicker occupancy and flexible terms.
Just under 95,000 sqm of new warehouse stock was added in Q2, following 185,000 sqm in Q1. Projects delivered this quarter included speculative developments in the Inner South West. While the annual pipeline is still forecast at 750,000–800,000 sqm, project delays and rising construction costs have slowed activity. Around 50% of the 2025 pipeline is pre-committed.
Tenant Takeaway: With new builds slowing and 50% of 2025 stock already pre-committed, act early if you're targeting new or modern facilities.
Prime net face rents rose by 0.7% on average in Q2, continuing a modest upward trend from Q4 2024. The strongest gains were recorded in the West (+4.9%) and Central West (+1.1%), while rents in the Outer West and South West held flat as increased availability and growing competition tempered upward pressure. Compared to Q4, prime face rents have risen 8.7% over H1, but rental growth is clearly moderating.
Secondary net rents lifted more sharply, particularly in the West (+9.6%) and Central West (+4.7%), as cost-sensitive tenants shifted toward more affordable fringe locations and repositioned older stock.
The more significant shift occurred in incentives. Prime incentives increased from 12.0% in Q4 to 14.3% in Q2, with the steepest uplifts in the Outer West and North West as both submarkets recorded vacancy increases. Secondary incentives rose by 2.8 percentage points on average, reaching up to 17.5% in areas where speculative completions and sublease overlap are most pronounced.
As a result, effective rents declined by 1% on average in Q2, with the Outer West and North West both down 4%. Central West and South West also saw marginal declines, while North and South Sydney remained steady, supported by limited supply and continued low vacancy.
Tenant Takeaway: Those with upcoming renewals or looking to expand should focus on total lease value. Rising incentives can help offset flat face rents and soften overall occupancy costs (especially in outer precincts and new estates).
Sublease availability continues to expand, now accounting for around 25% of all vacant industrial space. New sublease listings, including large warehouses in Moorebank and Eastern Creek, have added to tenant options. These often come fitted, racked and offer flexible lease terms or lower rents. We expect sublease volumes to remain elevated through 2025 as more tenants right-size or consolidate operations.
Tenant Takeaway: Sublease options are a smart and speedy short-to-mid-term solution. Look for fitout-ready, discounted space in Outer and South West Sydney.
Demand remained solid in Q2, with approximately 305,000 sqm transacted. Demand is led by logistics, e-commerce, manufacturing, and food sectors. Outer West dominated activity, driven by speculative stock and expansions. Figures show that most deals were in the 3,000–10,000 sqm range. While some caution remains due to economic uncertainty, the recent federal election, and conflict in Europe and the Middle East, Australian sentiment improved as the quarter progressed, particularly from tenants seeking modern premises for operational uplift.
Tenant Takeaway: Softer market conditions mean more negotiating power. Use current uncertainty to push for better terms, especially on lease length, incentives, and fitout contributions.
The sharp rise in South Sydney’s vacancy to 4.0% marks a significant change for what has historically been a supply-constrained, high-demand industrial precinct. On the downside, existing tenants are feeling the strain. Tenant CS Industrial Director, Bruce Husband, notes:
"Prime net face rents exceed $470/sqm in Perry Park Industrial Estate, Alexandria Industrial Estate, and Sydney Corporate Park in Alexandria. It's worth noting outgoings now range between $120-$145/sqm within the previously mentioned estates. Many tenants are struggling with rising lease renewal costs, limited space flexibility, and growing operational and labour costs. With this in mind, companies will consider options such as downsizing, consolidating, or relocating - often to outer precincts with lower rents and outgoings."
The majority of South Sydney landlords are still holding firm on face rents, and while incentives are improving, the net savings often don’t offset the rent pressure. In short: for sitting tenants with upcoming lease renewals, it's a challenging environment.
Submarkets adjacent to major upgrades, such as those surrounding the Western Sydney Airport and Moorebank Intermodal Terminal are seeing elevated interest due to future freight efficiencies and improved connectivity. Transport-oriented developments are also being viewed as future-proof options for tenants with growing last-mile logistics or regional distribution requirements.
Melbourne’s industrial vacancy rate remains elevated at 3.1% in Q2 2025, but market conditions remain uneven. The North remains the softest submarket at 5.3%, where speculative completions continue to outpace demand. The West also carries elevated vacancy but improved to 3.7% due to delayed transactions finally concluding. Meanwhile, the East (1.3%) and South East (1.8%) remain heavily undersupplied, with tight stock and solid uptake keeping availability low.
The City Fringe rose slightly to 3.1%, the broader trend is one of divergence: core markets are constrained, while outer precincts offer greater volume and negotiation flexibility.
Tenant Takeaway: Focus your search on outer precincts like the North and West where vacancy is higher - you’ll find more options and stronger negotiation power.
Around 555,000 sqm of new industrial space was delivered across Melbourne in H1 2025, with completions heavily concentrated in the North and West. A large proportion of this space was speculative and remains unleased, placing upward pressure on vacancy in those precincts. Notable H1 2025 completions include:
The forward pipeline has contracted significantly, with 654,000 sqm forecast for completion in 2025, down nearly 40% from 2024 levels. Just 55% of this supply is currently pre-committed, and several speculative projects remain contingent on tenant demand.
Tenant Takeaway: Developers are sitting on unleased stock. Use this to your advantage when negotiating rent, fitout terms, or flexible configurations.
Prime net rents across Melbourne recorded very little movement from Q1 to Q2, but posted modest growth since H2 2024. The North led with a 3.6% uplift to $144/sqm, followed by the South East, up 3.1% to $166/sqm, and the West, rising 3.4% to $152/sqm. Rents in the East ($167/sqm) and City Fringe ($245/sqm) remained steady.
Incentives average just under 20%, and the West and North continue to offer the most generous terms, with deals in the 25–30% range still being recorded. Incentives in the South East (19.5%), East (17.5%), and City Fringe (17.5%) held firm. Effective rents were broadly flat, with marginal improvement in fringe precincts where incentive pressure is beginning to ease.
Tenant Takeaway: With incentives nearing 30% in outer markets, push for better total lease value, especially if you're open to longer terms or non-core locations.
Sublease vacancy represents 18% of total vacancy and is rising incrementally in the North and West as some tenants restructure earlier space expansions.
Tenant Takeaway: Rising sublease space offers a chance to secure well-located facilities at lower cost, but act early as quality options are being absorbed quickly.
Leasing momentum recovered in Q2, with ~145,000 sqm of take-up, pushing YTD activity 17% above 2024. Most demand was concentrated in the West and South East, with large-format deals continuing to drive volume.
Notable Q2 deals include:
3PLs, automotive, FMCG, and e-commerce tenants dominated. Smaller users (<5,000 sqm) remained active but faced limited prime options in core locations. Decision-making remains cautious, with incentives key to securing deals.
Tenant Takeaway: Big players are still active, but if you’re a smaller occupier, expect limited prime stock in core areas. Act fast or look to fringe markets.
Just 55% of the 2025 pipeline is committed, with many speculative builds still seeking tenants. Projects like Brookfield’s in Pakenham and Aliro’s in Tottenham remain partially unleased. Looking to 2026, around 865,000 sqm could come online, but over 40% of this will require pre-commitments to proceed. This offers tenants an opportunity to shape design and lease terms in exchange for early commitment.
Rising construction and operating costs, driven by broader economic pressures are making it more difficult for tenants to manage total occupancy costs. Higher face rents, energy prices, insurance premiums, and fitout/racking expenses are squeezing budgets and prompting more cautious leasing behaviour. This is evident in areas like the City Fringe, where vacancy has risen as some occupiers delay relocations or reduce space requirements. Tenants are increasingly looking to outer precincts or more flexible lease structures to manage rising overheads.
Brisbane’s industrial vacancy rate continued to climb in Q2 2025, reaching 4.2%, up from 3.6% in Q1 and 3.1% in Q4 2024. This marks the third consecutive quarterly rise and the highest rate since 2020, reflecting a shift in market dynamics as backfill volumes increase, and speculative completions hit the market. The rise hasn’t been uniform. Vacancy in the South and West lifted sharply, driven by a concentration of larger-format spaces above 10,000 sqm returning to market. In contrast, the Trade Coast tightened to 2.2% as sublease additions were absorbed, while the M1 Corridor also saw a marginal improvement, supported by steady demand from logistics users. Secondary vacancy remains more volatile, especially in outer areas where older assets are struggling to compete on functionality and sustainability. Larger backfill options are helping shape the landscape, with assets such as the 55,739 sqm development at Healthwood set to become available in H2. While overall vacancy remains below the 6% threshold (typically considered tenant-favourable), market momentum is clearly shifting.
Tenant Takeaway: With vacancy rising for a third straight quarter (especially in the South and West), tenants now have more choice and bargaining power in non-core locations.
Brisbane recorded approximately 337,000 sqm of new completions in H1 2025, with 180,000 sqm delivered in Q1 and a further 157,000 sqm in Q2. Delivery was led by major pre-committed and speculative builds across the South and West, where land availability and scale remain more accessible. Notable completions included:
Tenant Takeaway: Developers are slowly delivering, so if you're planning ahead, explore recently completed or upcoming stock while supply remains available and incentives are still attractive.
Since Q4 2024, face rents have continued to rise modestly, with prime net rates up from $170/sqm to $174/sqm by Q2 2025, driven largely by Trade Coast and North submarkets. Secondary rents have remained steady, with some softening observed in the South and West.
However, those face rent gains have been more than offset by growing incentives. Prime incentives have increased across every submarket since Q4 ‘24, pushing effective rents lower in all precincts except the West, where they have held steady. For secondary stock, effective rents have also fallen across most of the city, with the North being the only submarket to buck the trend. Incentives are now commonly in the 10–15% range (up from sub-10% levels seen in late 2024), with some larger or fringe-area deals pushing even higher. Outgoings, which briefly dropped in Q1 ‘25, rose again in Q2, up roughly 3% QoQ due to rising insurance and maintenance costs.
Tenant Takeaway: Face rents may be rising slightly, but growing incentives mean effective rents are falling. Now is a great time to push for stronger terms, especially if you're leasing larger sites or space in outer-metro areas.
Sublease space remains a small but active part of the Brisbane market. Availability rose in late 2024, particularly in the Trade Coast, but stabilised through 2025 as some spaces were absorbed.
Tenant Takeaway: While volumes are limited, subleases continue to offer cost-effective, short-term options for tenants.
Brisbane recorded around 350,000 sqm of take-up in H1 2025, with a subdued Q1 followed by a stronger Q2 rebound. Activity was led by logistics and construction tenants, with major pre-lease deals like Officeworks at Redbank driving South West volumes. Trade Coast and South remained the busiest submarkets, though demand is now more measured, with flexibility and cost the key focus.
Tenant Takeaway: With demand rebounding in Q2 and cost-conscious tenants in play, act now to secure space before competition tightens again - especially those in the logistics and construction space.
Tenants remain active but are taking longer to transact, focusing on lease flexibility and long-term value rather than pure expansion. Leasing decisions are more deliberate, with many groups consolidating or rightsizing in response to changing economic and supply chain conditions. Some tenants are choosing shorter leases to keep their options open, with an eye toward future consolidation or strategic relocation. Several occupiers have recently adopted this short-term approach to preserve flexibility in a shifting market.
Larger occupiers are leaning into pre-lease deals to secure specification and cost certainty amid limited speculative delivery. Tailored build-to-suit solutions are also gaining traction as some tenants seek long-term operational control and future-proofed facilities.
After years of volatility, industrial construction pricing has begun to stabilise in Brisbane. Contractor pricing has eased by 5–10% and tender windows have widened, improving feasibility for pre-lease and owner-occupier projects and potentially reactivating paused developments. While this improves the likelihood of new builds, construction costs alone aren’t enough, tenant pre-commitment levels still need to improve for new speculative supply to resume at scale.
Today’s shifting industrial market demands the right representation. Having an expert tenant rep in your corner can mean the difference between overpaying for space and securing terms that save you thousands. Tenant CS works exclusively for tenants - finding all options (both off- and on- market), creating leverage, and negotiating outcomes that protect your interests. Let’s secure you the strongest outcomes possible.
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Short on time? Here’s what industrial tenants need to know - fast.
Sydney: Vacancy rose to 3.0% as new supply and subleases (25% of stock) hit the market. Incentives climbed to 14.3% for prime and 17.5% for secondary, softening effective rents and shifting conditions in favour of tenants. Most deals fall in the 3,000-10,000 sqm range, led by logistics, food, and retail. South Sydney remains tight and costly, pushing demand to outer precincts. Areas near Western Sydney Airport and Moorebank are gaining traction for their transport links and long-term value.
Melbourne: Melbourne’s industrial market is shifting. Vacancy average sits at 3.1% at the end of H1 2025, with outer precincts like the North (5.3%) and West (3.7%) offering more space. Subleases now make up 18% of total vacancy, and 45% of 2025's pipeline remains uncommitted - giving tenants more choice and flexibility. Incentives are also elevated, reaching up to 30% in outer markets. For tenants open to location or early commitment, there’s real opportunity to secure better terms and future-ready space.
Jump to Melbourne for more info.
Brisbane: Brisbane is offering tenants more breathing room. Vacancy hit 4.2% in Q2 2025 (the highest since 2020) while incentives rose to 10-15%, softening effective rents. Supply is slowing, backfill space is rising, and subleases offer flexible short-term options. Leasing is more cautious, but 350,000 sqm of take-up in H1 and easing construction costs mean now’s a good time to negotiate - especially in the South (6.7% vacancy) and West (3.9%).
Jump to Brisbane for more info.
Sydney’s industrial vacancy rate rose to 3.0% in Q2 2025, up from 2.8% in Q1 and 2.5% in Q4 2024. While still historically low, this marks the second consecutive quarter of softening and reflects a slow return to more balanced market conditions. The rise was driven by increases in the South (+1.1%), West (+1%), North (+0.3%), and South West (+0.1%). These were slightly offset by tightening in the Outer West and Central West, each down 0.2%, suggesting leasing momentum in core and growth corridors.
The Outer West remains the most supplied market at 4.7%, influenced by recent completions and lingering subleases, including the ~75,000 sqm Eastern Creek facility. Inner metro markets like the North (0.6%) and Central West (2.2%) remain tight, with few new projects and consistent demand.
Tenant Takeaway: Make use of increased vacancy and sublease availability to explore better-value spaces with quicker occupancy and flexible terms.
Just under 95,000 sqm of new warehouse stock was added in Q2, following 185,000 sqm in Q1. Projects delivered this quarter included speculative developments in the Inner South West. While the annual pipeline is still forecast at 750,000–800,000 sqm, project delays and rising construction costs have slowed activity. Around 50% of the 2025 pipeline is pre-committed.
Tenant Takeaway: With new builds slowing and 50% of 2025 stock already pre-committed, act early if you're targeting new or modern facilities.
Prime net face rents rose by 0.7% on average in Q2, continuing a modest upward trend from Q4 2024. The strongest gains were recorded in the West (+4.9%) and Central West (+1.1%), while rents in the Outer West and South West held flat as increased availability and growing competition tempered upward pressure. Compared to Q4, prime face rents have risen 8.7% over H1, but rental growth is clearly moderating.
Secondary net rents lifted more sharply, particularly in the West (+9.6%) and Central West (+4.7%), as cost-sensitive tenants shifted toward more affordable fringe locations and repositioned older stock.
The more significant shift occurred in incentives. Prime incentives increased from 12.0% in Q4 to 14.3% in Q2, with the steepest uplifts in the Outer West and North West as both submarkets recorded vacancy increases. Secondary incentives rose by 2.8 percentage points on average, reaching up to 17.5% in areas where speculative completions and sublease overlap are most pronounced.
As a result, effective rents declined by 1% on average in Q2, with the Outer West and North West both down 4%. Central West and South West also saw marginal declines, while North and South Sydney remained steady, supported by limited supply and continued low vacancy.
Tenant Takeaway: Those with upcoming renewals or looking to expand should focus on total lease value. Rising incentives can help offset flat face rents and soften overall occupancy costs (especially in outer precincts and new estates).
Sublease availability continues to expand, now accounting for around 25% of all vacant industrial space. New sublease listings, including large warehouses in Moorebank and Eastern Creek, have added to tenant options. These often come fitted, racked and offer flexible lease terms or lower rents. We expect sublease volumes to remain elevated through 2025 as more tenants right-size or consolidate operations.
Tenant Takeaway: Sublease options are a smart and speedy short-to-mid-term solution. Look for fitout-ready, discounted space in Outer and South West Sydney.
Demand remained solid in Q2, with approximately 305,000 sqm transacted. Demand is led by logistics, e-commerce, manufacturing, and food sectors. Outer West dominated activity, driven by speculative stock and expansions. Figures show that most deals were in the 3,000–10,000 sqm range. While some caution remains due to economic uncertainty, the recent federal election, and conflict in Europe and the Middle East, Australian sentiment improved as the quarter progressed, particularly from tenants seeking modern premises for operational uplift.
Tenant Takeaway: Softer market conditions mean more negotiating power. Use current uncertainty to push for better terms, especially on lease length, incentives, and fitout contributions.
The sharp rise in South Sydney’s vacancy to 4.0% marks a significant change for what has historically been a supply-constrained, high-demand industrial precinct. On the downside, existing tenants are feeling the strain. Tenant CS Industrial Director, Bruce Husband, notes:
"Prime net face rents exceed $470/sqm in Perry Park Industrial Estate, Alexandria Industrial Estate, and Sydney Corporate Park in Alexandria. It's worth noting outgoings now range between $120-$145/sqm within the previously mentioned estates. Many tenants are struggling with rising lease renewal costs, limited space flexibility, and growing operational and labour costs. With this in mind, companies will consider options such as downsizing, consolidating, or relocating - often to outer precincts with lower rents and outgoings."
The majority of South Sydney landlords are still holding firm on face rents, and while incentives are improving, the net savings often don’t offset the rent pressure. In short: for sitting tenants with upcoming lease renewals, it's a challenging environment.
Submarkets adjacent to major upgrades, such as those surrounding the Western Sydney Airport and Moorebank Intermodal Terminal are seeing elevated interest due to future freight efficiencies and improved connectivity. Transport-oriented developments are also being viewed as future-proof options for tenants with growing last-mile logistics or regional distribution requirements.
Melbourne’s industrial vacancy rate remains elevated at 3.1% in Q2 2025, but market conditions remain uneven. The North remains the softest submarket at 5.3%, where speculative completions continue to outpace demand. The West also carries elevated vacancy but improved to 3.7% due to delayed transactions finally concluding. Meanwhile, the East (1.3%) and South East (1.8%) remain heavily undersupplied, with tight stock and solid uptake keeping availability low.
The City Fringe rose slightly to 3.1%, the broader trend is one of divergence: core markets are constrained, while outer precincts offer greater volume and negotiation flexibility.
Tenant Takeaway: Focus your search on outer precincts like the North and West where vacancy is higher - you’ll find more options and stronger negotiation power.
Around 555,000 sqm of new industrial space was delivered across Melbourne in H1 2025, with completions heavily concentrated in the North and West. A large proportion of this space was speculative and remains unleased, placing upward pressure on vacancy in those precincts. Notable H1 2025 completions include:
The forward pipeline has contracted significantly, with 654,000 sqm forecast for completion in 2025, down nearly 40% from 2024 levels. Just 55% of this supply is currently pre-committed, and several speculative projects remain contingent on tenant demand.
Tenant Takeaway: Developers are sitting on unleased stock. Use this to your advantage when negotiating rent, fitout terms, or flexible configurations.
Prime net rents across Melbourne recorded very little movement from Q1 to Q2, but posted modest growth since H2 2024. The North led with a 3.6% uplift to $144/sqm, followed by the South East, up 3.1% to $166/sqm, and the West, rising 3.4% to $152/sqm. Rents in the East ($167/sqm) and City Fringe ($245/sqm) remained steady.
Incentives average just under 20%, and the West and North continue to offer the most generous terms, with deals in the 25–30% range still being recorded. Incentives in the South East (19.5%), East (17.5%), and City Fringe (17.5%) held firm. Effective rents were broadly flat, with marginal improvement in fringe precincts where incentive pressure is beginning to ease.
Tenant Takeaway: With incentives nearing 30% in outer markets, push for better total lease value, especially if you're open to longer terms or non-core locations.
Sublease vacancy represents 18% of total vacancy and is rising incrementally in the North and West as some tenants restructure earlier space expansions.
Tenant Takeaway: Rising sublease space offers a chance to secure well-located facilities at lower cost, but act early as quality options are being absorbed quickly.
Leasing momentum recovered in Q2, with ~145,000 sqm of take-up, pushing YTD activity 17% above 2024. Most demand was concentrated in the West and South East, with large-format deals continuing to drive volume.
Notable Q2 deals include:
3PLs, automotive, FMCG, and e-commerce tenants dominated. Smaller users (<5,000 sqm) remained active but faced limited prime options in core locations. Decision-making remains cautious, with incentives key to securing deals.
Tenant Takeaway: Big players are still active, but if you’re a smaller occupier, expect limited prime stock in core areas. Act fast or look to fringe markets.
Just 55% of the 2025 pipeline is committed, with many speculative builds still seeking tenants. Projects like Brookfield’s in Pakenham and Aliro’s in Tottenham remain partially unleased. Looking to 2026, around 865,000 sqm could come online, but over 40% of this will require pre-commitments to proceed. This offers tenants an opportunity to shape design and lease terms in exchange for early commitment.
Rising construction and operating costs, driven by broader economic pressures are making it more difficult for tenants to manage total occupancy costs. Higher face rents, energy prices, insurance premiums, and fitout/racking expenses are squeezing budgets and prompting more cautious leasing behaviour. This is evident in areas like the City Fringe, where vacancy has risen as some occupiers delay relocations or reduce space requirements. Tenants are increasingly looking to outer precincts or more flexible lease structures to manage rising overheads.
Brisbane’s industrial vacancy rate continued to climb in Q2 2025, reaching 4.2%, up from 3.6% in Q1 and 3.1% in Q4 2024. This marks the third consecutive quarterly rise and the highest rate since 2020, reflecting a shift in market dynamics as backfill volumes increase, and speculative completions hit the market. The rise hasn’t been uniform. Vacancy in the South and West lifted sharply, driven by a concentration of larger-format spaces above 10,000 sqm returning to market. In contrast, the Trade Coast tightened to 2.2% as sublease additions were absorbed, while the M1 Corridor also saw a marginal improvement, supported by steady demand from logistics users. Secondary vacancy remains more volatile, especially in outer areas where older assets are struggling to compete on functionality and sustainability. Larger backfill options are helping shape the landscape, with assets such as the 55,739 sqm development at Healthwood set to become available in H2. While overall vacancy remains below the 6% threshold (typically considered tenant-favourable), market momentum is clearly shifting.
Tenant Takeaway: With vacancy rising for a third straight quarter (especially in the South and West), tenants now have more choice and bargaining power in non-core locations.
Brisbane recorded approximately 337,000 sqm of new completions in H1 2025, with 180,000 sqm delivered in Q1 and a further 157,000 sqm in Q2. Delivery was led by major pre-committed and speculative builds across the South and West, where land availability and scale remain more accessible. Notable completions included:
Tenant Takeaway: Developers are slowly delivering, so if you're planning ahead, explore recently completed or upcoming stock while supply remains available and incentives are still attractive.
Since Q4 2024, face rents have continued to rise modestly, with prime net rates up from $170/sqm to $174/sqm by Q2 2025, driven largely by Trade Coast and North submarkets. Secondary rents have remained steady, with some softening observed in the South and West.
However, those face rent gains have been more than offset by growing incentives. Prime incentives have increased across every submarket since Q4 ‘24, pushing effective rents lower in all precincts except the West, where they have held steady. For secondary stock, effective rents have also fallen across most of the city, with the North being the only submarket to buck the trend. Incentives are now commonly in the 10–15% range (up from sub-10% levels seen in late 2024), with some larger or fringe-area deals pushing even higher. Outgoings, which briefly dropped in Q1 ‘25, rose again in Q2, up roughly 3% QoQ due to rising insurance and maintenance costs.
Tenant Takeaway: Face rents may be rising slightly, but growing incentives mean effective rents are falling. Now is a great time to push for stronger terms, especially if you're leasing larger sites or space in outer-metro areas.
Sublease space remains a small but active part of the Brisbane market. Availability rose in late 2024, particularly in the Trade Coast, but stabilised through 2025 as some spaces were absorbed.
Tenant Takeaway: While volumes are limited, subleases continue to offer cost-effective, short-term options for tenants.
Brisbane recorded around 350,000 sqm of take-up in H1 2025, with a subdued Q1 followed by a stronger Q2 rebound. Activity was led by logistics and construction tenants, with major pre-lease deals like Officeworks at Redbank driving South West volumes. Trade Coast and South remained the busiest submarkets, though demand is now more measured, with flexibility and cost the key focus.
Tenant Takeaway: With demand rebounding in Q2 and cost-conscious tenants in play, act now to secure space before competition tightens again - especially those in the logistics and construction space.
Tenants remain active but are taking longer to transact, focusing on lease flexibility and long-term value rather than pure expansion. Leasing decisions are more deliberate, with many groups consolidating or rightsizing in response to changing economic and supply chain conditions. Some tenants are choosing shorter leases to keep their options open, with an eye toward future consolidation or strategic relocation. Several occupiers have recently adopted this short-term approach to preserve flexibility in a shifting market.
Larger occupiers are leaning into pre-lease deals to secure specification and cost certainty amid limited speculative delivery. Tailored build-to-suit solutions are also gaining traction as some tenants seek long-term operational control and future-proofed facilities.
After years of volatility, industrial construction pricing has begun to stabilise in Brisbane. Contractor pricing has eased by 5–10% and tender windows have widened, improving feasibility for pre-lease and owner-occupier projects and potentially reactivating paused developments. While this improves the likelihood of new builds, construction costs alone aren’t enough, tenant pre-commitment levels still need to improve for new speculative supply to resume at scale.
Today’s shifting industrial market demands the right representation. Having an expert tenant rep in your corner can mean the difference between overpaying for space and securing terms that save you thousands. Tenant CS works exclusively for tenants - finding all options (both off- and on- market), creating leverage, and negotiating outcomes that protect your interests. Let’s secure you the strongest outcomes possible.
We acknowledge the Traditional Custodians of the lands on which we work. Our offices are located on the land of the Gadigal peoples of the Eora Nation and the Wurundjeri peoples of the Kulin Nation. We acknowledge their continued connection and contribution to land, water and community, and pay our respects to Elders past and present.
We’re proud to be an inclusive workplace, where diversity in all its forms are valued and every member of our team is encouraged to bring their whole self to work.
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