TMX Industrial Property Market Snapshot Q1 26

National Industrial Property Market Overview

Australia & New Zealand Q1 2026

WESTERN AUSTRALIA

• Rental – Slight increase in face rents

• Incentives – Remain stable

• Land Supply – Constrained development ready land

• Building Supply – Slowing and requires pre-commitment

• Demand – “Wait & see” approach in response to global issues

QUEENSLAND

• Rental - Incremental increase in TradeCoast market

• Incentives - Stabilised from last quarter

• Land Supply - Highly constrained in all markets

• Building Supply - Reduced due to take up of last quarter

• Demand - Strong levels of enquiry and activity across markets

NEW SOUTH WALES

• Rental – Stable

• Incentives – Remain stable

• Land Supply – Concentrated in Outer West

• Building supply – Forecast to increase through 2026

• Demand – Large corporates active; take-up steady

SOUTH AUSTRALIA

• Rental – Stable through Q1

• Incentives – Remain stable for prime industrial

• Land Supply – New opportunities for Outer North

• Building Supply –Uncommitted specs in Outer North

• Demand – Positive sentiment across general

VICTORIA

• Rental – Face rents holding firm

• Incentives – Holding despite reduction in supply

• Land Supply – Remains constrained

• Building Supply – A-Grade supply slowly being taken up

• Demand – Soft demand

NEW ZEALAND

• Rental - Stable

• Incentives – Beginning to be offered

• Land Supply – Remains in short supply

• Building supply – Increasing

• Demand – Stabilising

Data in the following pages is based on industrial buildings > 5,000sqm

Prime: Buildings less than 10 years old with internal clearances at or above 13.7m. Buildings showcase design excellence offering ESFR sprinklers, a combination of docks/on-grade doors and sufficient truck articulation for loading/unloading.

Secondary: Buildings generally older than 10 years old but still functional with internal clearances up to 12.6m at the ridge. Buildings typically don’t have high sustainability ratings and may have limitations with warehouse access (no. docks/ on grade doors) and restricted heavy vehicle maneuverability on site.

Victoria

Melbourne Property Market Overview

*Key industrial suburbs only listed

WEST

• Altona

• Truganina

• Laverton

• Deer Park

• Tarneit

NORTH SOUTH EAST

• Tullamarine/Melbourne Airport

• Epping

• Campbellfield

• Somerton

• Craigieburn

• Mickleham

• Dandenong South

• Cranbourne West

• Keysborough

• Mentone

• Clayton

Industrial Market Commentary

Q1 2026

Outgoings continue to increase

New speculative commencements remain limited in all markets

Impact of the fuel supply shock and interest rate rises yet to be priced into the market

Occupiers continue to transform their networks

Flight to quality remains prevalent

Location continues to be a key driver for occupiers

Recent Property Transactions

New South Wales

Sydney Property Market Overview

*Key industrial suburbs only listed

NORTH WEST

• Marsden Park

• Seven Hills

• Glendenning

OUTER WEST

• Wetherill Park

• Eastern Creek

• Kemps Creek

INNER WEST

• Homebush

• Chullora

• Silverwater

SYDNEY

OUTER SOUTH WEST

• Ingleburn

• Minto

• Smeaton Grange

SOUTH WEST

• Milperra

• Prestons

• Moorebank

SOUTH

• Alexandria

• Mascot

• Matraville

Industrial Market Commentary

Q1 2026

Incentives remain steady around 12.5% to 20% in most locations

Higher development economic rents due to moderate cost pressure in land and build rates

Land values are supported by contrained availability of tradeable land across Sydney, with data centres distorting pricing

Patchy underlying demand, large corporates most active

Vacancy is stable with a pause in the quantity of speculative construction completed in H1 26

Outgoings growth stabilising, though remains a focus for occupiers

Recent Property Transactions

Queensland

Brisbane Property Market Overview

*Key industrial suburbs only listed

*Logan Motorway Corridor includes Heathwood, Larapinta, Berrinba, Parkinson, Meadowbrook, Kingston

WEST

• Wacol

• Carole Park

• Redbank

• Bundamba

• Swanbank

NORTH

• Banyo

• Geebung

• Northgate

• Brendale

• North Lakes

TRADE COAST

• Eagle Farm

• Brisbane Airport

• Pinkenba

• Murarrie

• Port of Brisbane

SOUTH & LOGAN

• Acacia Ridge

• Archerfield

• Willawong

• Logan Motorway Corridor*

• Crestmead

YATALA

• Yatala

• Stapylton

• Ormeau

BRISBANE

Industrial Market Commentary

Q1 2026

Steady growth and tight market conditions fuel investment and occupier demand

Constrained land supply places upward pressure on economic rents and outgoings

Incentives for existing properties have stabilised at elevated levels

Measured return of speculative development in core markets

Recent Property Transactions

Procured & delivered by

Location: Swanbank, Queensland

Building Area: 30,846sqm

South Australia

Adelaide Property Market Overview

*Key industrial suburbs only listed

OUTER NORTH

• Edinburgh

• Direk

• Regency Park

• Wingfield

• Pooraka INNER NORTH

INNER WEST

• Adelaide Airport

• Mile End

• Torrensville

• Edwardstown

• Glandore

• St Marys INNER SOUTH

OUTER SOUTH

• Lonsdale

Industrial Market Commentary

Q1 2026

Incentives remain unchanged in all markets

Englobo land sales in Outer North create opportunities

Vacancy increasing marginally to 2.5% this quarter

Majority of spec projects concentrated in Northern regions

Pre-lease rents steadily increasing

Impacts of current geopolitical events will be closely monitored

Recent Property Transactions

Location: Edinburgh, South Australia

Building Area: 8,920sqm

Western Australia

Perth Property Market Overview

*Key industrial suburbs only listed

NORTH

• Wangara

• Balcatta

• Malaga

CORE

• Perth & Jandakot Airport

• Kewdale

• Welshpool

• Bibra Lake

EAST

• Forrestdale

• Brookdale

SOUTH

• Henderson

• East Rockingham

PERTH

Industrial Market Commentary

Q1 2026

Limited availability of larger warehouses

Increase in lease renewals as occupiers favour staying put over relocating

Consistent leasing demand especially in stock 3,000 –7,000sqm

Development land supply constrained to south

Vacancy remains tight with more availability in the south

Speculative stock construction very low

Industrial Market Commentary

Q1 2026

Positive conditions for increased construction

Increase in stock available for lease

Increased tenant negotiation leverage compared to recent tight market era

Locational efficiency is still key in NZ markets

Rising enquiry in smaller warehouses in Auckland

Rents holding steady across NZ markets with incentives rising

*NZ typically itemises rents for warehouse, office, canopy, hardstand, yard and parking. Above rents are normalized to reflect overall GLA, as per AU methodology.

Our team of Property Experts across ANZ

Portfolio Management Services

Our unique integrated property portfolio service offering allows us to assist with…

Rental

• Rent review

• Rental audits

• Benchmarking

Outgoings

• Reviews and reconciliations

• Identify cost saving opportunities

Property

Building & Compliance Centralised Platform

• Capture critical dates

• Document repository

Negotiations

• New and renewed leases

• Make Goods

• Surrender and assignments

• Sale of freehold sites

Portfolio Management Insights Q1 2026

Opportunities, risks & considerations

Outgoings

There have been noticeable increases in outgoings this quarter with Insurance costs growing the fastest and are expected to continue increasing due to climate risk and construction costs.  Statutory outgoings are still trending upwards due to general cost of living inflation and government revenue pressures going into 2026.

• Repairs and maintenance responsibilities and negotiations

Right sizing Bank Guarantee

Occupiers continue to right-size portfolios, focusing on operational efficiency rather than downsizing.  Demand is shifting toward modern, automation-ready facilities near urban hubs, with right-sizing driven by optimisation and efficiency rather than cost alone. Working capital and slowing leasing decisions are creating additional friction for relocations and rightsizing initiatives.

Landlords are increasingly requiring bank guarantees of 6-12 months gross rent, driven by heightened tenant credit risk, lender expectations, and rising costs associated with pressure on occupiers. Working capital and slowing leasing decisions are creating additional friction for relocations and right-sizing initiatives.

Looking ahead to Q2 2026, continued pressure from rising outgoings, larger bank guarantee requirements, and ongoing right-sizing initiatives are expected to slow occupier decision-making.

Construction Project Management

Managing your construction of an industrial warehouse project, from standard facilities through to automated, purpose-built distribution centers.

Working with hundreds of clients in your shoes, we’ve found that a lack of in-house expertise to navigate property procurement and construction journeys, can hinder expansion.

Through our team of industry specialists with end-to-end capabilities, we support this process, ensuring certainty from the business case, through to project delivery.

End-to-end Support

Know your costs

Develop a robust base building to avoid variations and unforeseen costs during construction.

Timeline control

Delivery timeline certainty will ensure clarity on transition timeframe and coordination with operations.

Early access

Early access to commence operational fit-out to provide financial benefit to minimize ongoing rental payments.

Ensure optimum quality

Quality of the build will ensure longevity in the asset for the term of the lease.

Indicative Construction Costs

All below figures are based on a generic 13.7m high warehouse shell including high level services

Given the volatility in oil price driven by the Middle-Eastern disruptions, we are witnessing an increase in construction pricing in the immediate term of 3-5%. The expectation is that this is temporary however timing is uncertain.

Pricing volatility is driven by:

• Fuel levies added to delivery of materials

• Sharp increase in oil-derived products

• Material shortages

*All figures based on past build rates, not a reliable estimate of future costs. Please speak to our Development Team for more accurate cost indications tailored to your requirements.

TMX undertook an end-to-end process for Coles, including:

• Developing a detailed technical design document and architectural plans.

• Property procurement facilitated through a developer tender and selection process

• Negotiation of Agreement for Lease

• Complete project management including automation

Construction Project Management Team

Angus Perry

Director +61 499 464 213

Nick Ingleby VIC Director +61 448 332 815

Steve Packer

Associate Director

+61 438 922 818

Hugh Vagg

Senior Project Manager

+61 466 743 781

Andrew Walsh

Ben Kilby

Patrick Leong Project Director +61 407 999 140

Nick Cauchi Associate Director +61 415 935 531

Rachelle Eid Project Manager

+61 400 033 544

Cork

Rulla Haifa Director +61 402 640 869

Sarah Thorne Senior Project Manager +61 451 063 991

Nour El-leissy Project Manager +61 424 426 442

Brett Nelson Associate Director +61 434 555 663

Jack Nagle Senior Project Manager +61 418 395 730

Kesty Bindya Senior Project Manager

+61 432 544 126

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Transport your goods from supplier to end customer in the most efficient way.

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Merchandise Planning

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