TMX Industrial Property Market Snapshot Q2 25

QUARTERLY UPDATE – Q2 2025

Industrial Property Market Snapshot

Australia & New Zealand

National Industrial Property Market Overview

Australia & New Zealand Q2 2025

WESTERN AUSTRALIA

• Rental - Increase in prime & secondary face rents

• Incentives - Remain stable

• Land Supply - Constrained development ready land in all markets

• Building Supply - Slowing and requires precommitment

• Demand - Low demand due to high rents and limited availability

QUEENSLAND

• Rental - Stablising

• Incentives - Speculative facility reaching PC without precommitment are pressuring developers to offer higher incentives

• Land Supply - Constrained in all markets

• Building Supply - 500,000 sqm expected, half of which is speculative; drops to 450,000 sqm in 2026

• Demand - M1 Corridor has the lowest vacancy at 0.5%, indicating high demand and limited supply

NEW SOUTH WALES

• Rental - Stable

• Incentives - Rising in outer West, stable in infill locations

• Land Supply - Constrained in all markets

• Building Supply - Substantial supply of speculative product

SOUTH AUSTRALIA

• Rental - Modest rise in Inner North

• Incentives - Stable for prime industrial

• Land Supply - Remains constrained

• Building Supply - Very little if any speculative contruction. Pre-lease usually only way to get prime grade. No change in vacancy

• Demand - Healthy from a diverse group of occupiers

VICTORIA

• Rental - Stable

• Incentives - Vary across markets, rising in the West

• Land Supply - Constrained

• Building Supply - Contingent on pre-commitments being secured, vacancy increased to almost 3%

• Demand - Leasing acility has rebounded

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

• Demand - Slowing and dominated by larger users

NEW ZEALAND

• Rental - Stable

• Incentives - Increasing due to limited demand

• Land Supply - New industrial land unlocked in Wiri

• Building Supply - Speculative building ncrease

• Demand - Cautious

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

Q2 2025

Land tax remains one of the most significant pain points

Modern estates/ developments seeing improved leasing outcomes vs secondary

Outgoings under increasing upwards pressure

A-Grade supply becoming limited in Industrial West

Increasing leasing interest, especially in West and North

Northern speculative supply remains slow to absorb

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

Incentives remain high as owners compete to secure quality tenants

Net face rents remain stable across all markets

Land values hold steady, averaging $1,500/sqm in Western Sydney

90% of space leased in Q2 was in Outer and South West submarkets

Vacancy rate edges higher, partly doe to backfill and spec space

Outgoings continue to increase at a slower rate

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

Q2 2025

Rents are increasing, led by North and TradeCoast submarkets

Restricted land supply in central markets pushing development further out

Speculative facility reaching PC without precommitment are pressuring developer to offer higher incentives

520,000sqm in supply pipeline, half of which is speculative

Vacancy has risen from Q1 driven by spec supply in the South submarket

Recent Property Transactions

Procured & delivered by

Location: Swanbank, Queensland

Building Area: 14,983sqm

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

Q2 2025

Leasing demand at long term average through Q2

Industrial vacancy remains around 1.8% this quarter

Demand for greenfield and pre-lease sites surging

Slight rent growth across Inner North and West markets

Pre-lease rents showing growth

Constraint of quality backfill space

Recent Property Transactions

Designed,

&

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

Q2 2025

Tenancies above 10,000sqm account for 80% of vacancy

Prime rent growth, particularly in the Eastern market

Consistent leasing demand across the first half of 2025

Sub 5,000sqm pre-lease demand on the rise Vacancy has increased across the quarter to 2.5%

Incentives stabilised from Q1 2025

Recent Property Transactions

Procured & delivered by TMX

Location: Jandakot, Western Australia

Warehouse Area: 5,540sqm

Container-rated Hardstand: 9,860sqm

Industrial Market Commentary

Q2 2025

Speculative building commencements

Rise in sublease space as occupiers assess footprint

Constrained budgets still leading to a cautious approach with leasing decisions

New industrial land unlocking in Wiri, Auckland

Low supply & moderate demand seeing restrained rental growth

Rents holding steady across NZ markets

*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

Property Negotiations

• New and renewed leases

• Make Goods

• Surrender and assignments

• Sale of freehold sites

Outgoings

• Reviews and reconciliations

• Identify cost saving opportunities

Building & Compliance

• Repairs and maintenance responsibilities and negotiations

Centralised Platform

• Capture critical dates

• Document repository

In addition to undertaking complete portfolio management services, our team has recently completed additional services for clients including:

• Lease renewal

• Renegotiating lease terms

• Surrender of lease

• Outgoings audits

• Make good negotiations

• Market rent review & analytics

• Lease audit

• Property review & advice

• Stay vs go analysis

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

When facilities need to be upgraded or new facilities need to be constructed, we are here to support and add value to the process.

The latest construction rates are below for your reference, sourced from across our current projects. We can support in any early feasibility works that you may have to ensure that your next project achieves the full benefit to optimise your operations.

Study

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

Nick Cauchi Associate

Rachelle

Supply Chain Solutions

Addressing challenges at all stages of your digital and physical supply chain.

Supply Chain Strategy

Take a three-sixty-degree view of your supply chain.

Freight & Logistics

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

Advanced Manufacturing

Create value by systematically eliminating waste and inefficiency.

Network Design DC Design & Optimisation

Improve the flow of your products, from source to end consumer.

Merchandise Planning

Carefully curated product ranges, and accurate demand and fulfilment plans.

Design your warehouse solution for now, and in the future.

Program Management

Equip your business with systems to support future growth.

Investment Feasibility

Market-based research customized for your needs.

Supply Chain Team

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