QUARTER 2 2026
Industrial Property Market Snapshot
AU ST R A L I A & N EW Z E A L A N D Q U A R T E R LY U P D AT E
TMX TRANSFORM
National Industrial Property Market Overview AU ST R A L I A & N EW Z E A L A N D Q 2 2 0 2 6
Western Australia
Queensland
Rental – Slight Increase in face rents Incentives – Remain stable Land Supply – Owner-occupied land leads to constraint Building Supply – Lowest in many years Demand – Slight increase in Q2
Rental – Slight increase in majority of Queensland markets Incentives – Holding firm from last quarter Land Supply – Highly constrained in all markets Building Supply – Easing again this quarter Demand – Strong levels of enquiry and activity across markets
New South Wales Rental – Steady Incentives – Moving higher to between 17.5% and 25% Land Supply – Concentrated in Outer West and Aerotropolis Building Supply – Specs completing H2 2026 increasing supply Demand – Large corporates active; renewals attractive
New Zealand South Australia Rental – Remain stable across the state Incentives – Remain stable for prime industrial Land Supply – Becoming more constrained Building Supply – Slight increase in vacancy Demand – Slowing slightly over Q2
2
Victoria
Rental - Stable Incentives – Slight increase Land Supply – Remains in short supply Building supply – Long term increase Demand – In recovery phase
Rental – Face rents holding Incentives – Stabilising West/ North and growing Southeast Land Supply – Remains constrained Building Supply – Deferrals of speculative stock
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.
TMX TRANSFORM
State of the Market As we move through 2026, Australia's industrial property market continues to demonstrate resilience despite ongoing economic uncertainty While occupiers remain active, decision-making is more measured than in recent years, with a stronger focus on operational efficiency, network optimisation, workforce access and long-term flexibility. One of the most notable themes this quarter is this growing connection between property decisions and broader business strategy. Industrial real estate is no longer viewed simply as a lease event; it is increasingly linked to supply chain performance, customer service outcomes, automation, sustainability and future growth. The cost of waiting is also becoming increasingly evident. Many occupiers approaching lease expiry are finding renewal costs significantly higher than expected, prompting a reassessment of whether to renew, relocate or undertake a broader network review. The message for occupiers remains clear: quality options are becoming increasingly constrained, and delaying key property decisions is unlikely to result in better outcomes. At TMX, we continue to work with occupiers, developers and investors to translate these market dynamics into practical property and supply chain strategies.
Stefanie Frawley Executive Director, Property
Jane Goodman Research Manager, Property
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q2 2026
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V I CTO R I A - M E LB O U R N E
Victoria M E L B O U R N E P R O P E RT Y M A R K E T OV E RV I EW
West
North
South East
Altona
Tullamarine/Melbourne Airport
Dandenong South
Truganina
Epping
Cranbourne West
Laverton
Campbellfield
Keysborough
Deer Park
Somerton
Clayton
Tarneit
Craigieburn Mickleham
North
West
Melbourne CBD
South East
* Key industrial suburbs only listed
4
V I CTO R I A - M E LB O U R N E
Victoria Industrial Market Commentary Q2 2026
Market Snapshot Incentives have stabilised, with face rents remaining broadly steady
Vacancy trending upward across Melbourne as new speculative supply is delivered
Continued deferral of speculative development projects
Location remains key for occupier decision makers
Flight to quality remains prevalent Occupiers continue to focus on network transformation and operational efficiency
Net Face Rents ($/sqm)
Incentives (%)
Outgoings
Land rates ($/sqm)
VIC Core Markets
Prime
Secondary
Prime
Secondary
$/sqm
1-3 ha
3 ha +
West
145-155
115-135
25-35
20-30
35-45
750-950
500-700
North
145-155
115-125
25-30
10-20
30-40
600-800
450-650
South East
165-175
130-145
25-30
10-20
45-55
800-1,000
600-900
Victoria Average Prime Rent/Time
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q2 2026
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N E W S O U T H WA L E S - S Y D N E Y
New South Wales SY D N E Y P R O P E RT Y M A R K E T OV E RV I EW
North West
Outer West
Inner West
Marsden Park
Wetherill Park
Homebush
Seven Hills
Eastern Creek
Chullora
Glendenning
Kemps Creek
Silverwater
North West Inner West Sydney
Outer West South West
South Outer South West
Outer South West
South West
South
Ingleburn
Milperra
Alexandria
Minto
Prestons
Mascot
Smeaton Grange
Moorebank
Matraville
* Key industrial suburbs only listed
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N E W S O U T H WA L E S - S Y D N E Y
New South Wales Industrial Market Commentary Q2 2026
Market Snapshot Incentives continue to rise as landlords seek to maintain face rents
Economic rents continue to increase as development costs remain elevated and cap rates soften
Land values are supported by short supply of tradeable land across Sydney. Data centres demand continues to underpin land pricing
Increased activity from data centres suppliers, automotive, and parcel logistics companies
Vacancy concentrated in existing stock across core Western Sydney locations
Net Face Rents ($/sqm) NSW Core Markets
Outgoings growth is showing signs of moderation but remains a key occupier focus
Incentives (%)
Outgoings
Land rates ($/sqm)
Prime
Secondary
Prime
Secondary
$/sqm
1-3 ha
3 ha +
Inner West
280 – 350
240 – 270
15 – 20
12.5 – 20
60-80
2,000-2,500
2,000-2,300
Outer West
230 – 265
180 – 210
17.5 – 25
17.5 – 25
45-70
1,350-1,550
1,300-1,500
North West
240 – 270
180 – 220
15 – 22.5
15 – 22.5
45-65
1,350-1,550
1,300-1,500
South West
240 – 300
200 – 235
15 – 20
12.5 – 20
50-70
1,500-2,000
1,500-1,800
Outer South West
210 – 250
160 – 200
17.5 – 25
17.5 – 25
45-65
1,150-1,350
1,100-1,300
South
350 - 500
260 - 330
15 – 20
15 – 20
80-130
3,000-3,250
2,500-2,700
New South Wales Average Prime Rent/Time
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q2 2026
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QUEENSLAND - BRISBANE
Queensland B R I S BA N E P R O P E RT Y M A R K E T OV E RV I EW
West
North
Trade Coast
Wacol
Banyo
Eagle Farm
Carole Park
Geebung
Brisbane Airport
Redbank
Northgate
Pinkenba
Bundamba
Brendale
Murarrie
Swanbank
North Lakes
Port of Brisbane
North Trade Coast
Brisbane
South & Logan West
Yatala
South & Logan
Yatala
Acacia Ridge
Yatala
Archerfield
Stapylton
Willawong
Ormeau
Logan Motorway Corridor* Crestmead 8
*Key industrial suburbs only listed *Logan Motorway Corridor includes Heathwood, Larapinta, Berrinba, Parkinson, Meadowbrook, Kingston
QUEENSLAND - BRISBANE
Queensland Industrial Market Commentary Q2 2026
Market Snapshot The Queensland economy is outperforming the rest of Australia, driving strong industrial demand
Land scarcity limits development, pushing values higher in core precincts
Incentives hold firm as landlords maintain confidence, despite rate pressure
Supply pipeline easing, guiding tenants to pre-lease commitments Prime yields between 5.50% - 6.50%
Flight to quality absorbing spec supply and driving occupier compromise
Net Face Rents ($/sqm) QLD Core Markets
Incentives (%)
Outgoings
Land rates ($/sqm)
Prime
Secondary
Prime
Secondary
$/sqm
1 ha +
North
180 – 210
150 – 180
10 – 20
10 – 20
30-40
800-900
Trade Coast
190 – 220
160 – 190
10 – 20
10 – 20
35-45
850-950
South & Logan
160 – 190
130 – 160
15 – 25
15 – 30
25-35
650-750
West & Ipswich
160 – 190
130 – 160
15 – 25
15 – 30
25-35
550-650
Yatala
160 – 190
130 – 160
10 – 20
10 – 20
25-35
700-800
Queensland Average Prime Rent/Time
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q2 2026
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SO UTH AUSTRALIA - ADELAIDE
South Australia A D E L A I D E P R O P E RT Y M A R K E T OV E RV I EW
Outer North Edinburgh Direk
Outer North
Inner North Regency Park Wingfield Pooraka
Inner West
Inner North
Adelaide Airport Mile End Torrensville
Inner South Edwardstown Glandore
Adelaide Inner West
St Marys
Outer South
Inner South
Lonsdale * Key industrial suburbs only listed
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Outer South
SO UTH AUSTRALIA - ADELAIDE
South Australia Industrial Market Commentary Q2 2026
Market Snapshot Incentives remain lower than other major industrial markets
Owner-occupiers dominating market activity
Vacancy increasing modestly, reaching 3% this quarter
Speculative development pipeline slowing
Pre-lease rents continue to rise amid elevated construction costs
Supply constraints driving lease renewal activity
Net Face Rents ($/sqm) SA Core Markets
Prime
Inner North
160 – 165
Outer North
145 – 150
Inner South
170 – 190
Outer South
105 – 115
Inner West
200 – 220
Incentives (%)
Secondary
Prime
125 – 130
5 – 15
120 – 125
10 – 15
140 – 160
0 – 10
90 – 100
0 – 10
155 – 175
0 – 10
Secondary 0 - 10 5 - 15 0-5 0 - 10 0-5
Outgoings
Land rates ($/sqm)
$/sqm
1-3 ha
3 ha +
30-35
700-750
500-550
20-25
450-500
200-250
30-35
750-800
600-650
25-30
200-300
180-200
30-35
950-1,000
750-800
South Australia Average Prime Rent/Time
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q2 2026
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WESTERN AUSTRALIA - PERTH
Western Australia P E RT H P R O P E RT Y M A R K E T OV E RV I EW
North
Core
East
Wangara
Perth & Jandakot Airport
Forrestdale
Balcatta
Kewdale
Brookdale
Malaga
Welshpool Bibra Lake
North
Perth Core
East South
South Henderson East Rockingham
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*Key industrial suburbs only listed
WESTERN AUSTRALIA - PERTH
Western Australia Industrial Market Commentary Q2 2026
Market Snapshot Limited availability of tenancies exceeding 5,000sqm
Strong leasing demand driving rental growth in Q2
Land values rising sharply amid contrained supply
Large requirements need greater planning due to supply contraint
Vacancy tightening further quarter-on-quarter
Speculative development activity remains subdued
Net Face Rents ($/sqm)
Incentives (%)
Outgoings
Land rates ($/sqm)
WA Core Markets
Prime
Secondary
Prime
Secondary
$/sqm
1-3 ha
3 ha +
North
155 – 165
115 – 125
5 – 10
5 - 10
30 - 35
700 - 750
450 - 500
Core
170 – 175
120 – 135
10 – 15
5 - 15
30 - 35
650 - 750
500 - 600
East
160 – 165
120 – 130
10 – 20
5 - 15
30 - 35
600 - 700
500 - 600
South
140 – 150
100 – 110
10 – 20
5 - 15
25 - 30
500 - 550
400 - 450
Western Australia Average Prime Rent/Time
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q2 2026
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NEW ZEALAND
New Zealand Industrial Market Commentary Q2 2026
Market Snapshot Construction costs sitting stable across the country
Vacancy increasing in outer Auckland areas but still tight in central locations
Auckland outgoings remain the highest due to land values, insurance, and rates
Confidence improving after a pause to assess global oil crisis
Increased activity of developers acquiring land
Face rents continue to hold steady across New Zealand markets
Net Face Rents ($/sqm) NZ Core Markets
Incentives (%)
Outgoings
Land rates ($/sqm)
Prime
Secondary
Prime
Secondary
$/sqm
1 ha+
Auckland
240 – 265
175 – 195
3–7
0 – 10
25 - 30
850 - 1,500
Hamilton
155 – 165
110 – 130
3–7
0 – 10
20 - 25
350 - 650
Christchurch
165 – 180
100 – 120
3–7
0–5
20 - 27
350 - 550
*NZ typically itemises rents for warehouse, office, canopy, hardstand, yard and parking. Above rents are normalized to reflect overall GLA, as per AU methodology.
New Zealand Average Prime Rent/Time
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CLIENT SUCCESS
Client Success Q2 2026
Designed, procured & delivered
Designed, procured & delivered
Location
Acacia Ridge, Queensland
Location
Jandakot, Western Australia
Building area
9,714sqm
Building area
16,587sqm
Procured & delivered
Procured
Location
Archerfield Airport, Queensland
Location
Milperra, New South Wales
Building area
26,000sqm
Building area
2,628sqm
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q2 2026
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TMX TRANSFORM
End-to-End Portfolio Management Our unique integrated property portfolio service offering allows us to assist with…
Rent & Outgoings
Lease Reviews
Property Negotiations
Repairs & Maintenance
Centralised Platform
Portfolio Management Insights Q2 2026 Opportunities, risks & considerations
Flight to Quality
Monthly CPI
Delayed Decisions
Tenants are abandoning older, inefficient warehouses in favour of prime, modern assets. Businesses are actively seeking facilities with higher internal clearances and better transport access to reduce operational costs. This trend is prompting a closer review of property portfolios to ensure they continue to meet evolving occupier requirements.
Australia’s shift to monthly CPI provides timelier, more frequent inflation tracking, however contract wording needs to be reviewed, as most existing leases still mandate quarterly data. For these legacy contracts, calculations must utilise the updated ABS table to ensure compliance. Conversely, for new leases adopting the monthly index, occupiers should anticipate more rate volatility.
Occupiers are increasingly deferring property decisions to wait for market stability amid compounding pressures like the fuel crisis, rising land tax, and elevated interest rates. As this trend is impacting whole property portfolios, proactive portfolio planning is critical to managing lease events, mitigating risk, and align property strategies with business needs.
Looking ahead to Q3 2026 A comprehensive review of the FY25/26 outgoings wash-ups will be conducted in Q3, evaluating key drivers behind major operating expenditure and statutory cost fluctuations. This analysis will contribute to a growing portfolio knowledge base, supporting client outcomes through enhanced benchmarking and more effective dispute resolution.
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TMX TRANSFORM
Construction Project Management Managing your construction of an industrial warehouse project, from standard facilities through to automated, purpose-built distribution centers. ategy Str
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Manage
n sig De
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I
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Pr
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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
Timeline control
Develop a robust base building to avoid variations and unforeseen costs during construction.
Delivery timeline certainty will ensure clarity on transition timeframe and coordination with operations.
Early access
Ensure optimum quality
Early access to commence operational fit-out to provide financial benefit to minimize ongoing rental payments.
Quality of the build will ensure longevity in the asset for the term of the lease.
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q1 2026
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TMX TRANSFORM
Indicative Construction Costs All below figures are based on a generic 13.7m high warehouse shell including high level services The latest construction rates are below for your reference, sourced from across our current projects. This quarter has brought some moderation in rates, reflecting increased competitive pressure. This aligns with broader network trends, indicating a tightening in market conditions and greater pricing sensitivity. In contrast, freezer rates have increased in VIC, driven primarily by sustained cost escalation in construction materials and ongoing volatility in key raw inputs. These factors continue to place upward pressure on specialised asset pricing.
Type of Warehouse
VIC Rate/sqm
NSW Rate/sqm
QLD Rate/sqm
Ambient
$1,150
$1,150
$1,225
Temp Control
$1,950
$2,050
$2,250
Freezer
$2,850
$2,950
$3,100
*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.
Case Study The Southern Hemisphere's largest automated distribution centre. 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
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TMX TRANSFORM
Supply Chain Solutions Network Design Improve the flow of your products, from source to end consumer.
Supply Chain Strategy
DC Design & Optimisation Design your warehouse solution for now, and in the future.
Take a three-sixty-degree view of your supply chain.
Addressing challenges at all stages of your digital and physical supply chain.
Freight & Logistics Transport your goods from supplier to end customer in the most efficient way.
Merchandise Planning Carefully curated product ranges, and accurate demand and fulfilment plans.
Program Management
Investment Feasibility
Equip your business with systems to support future growth.
Market-based research customised for your needs.
Advanced Manufacturing Create value by systematically eliminating waste and inefficiency.
All underpinned by Simulation
Metaverse
Innovation TMX Database
INDUSTRIAL PROPERTY MARKET SNAPSHOT | ANZ Q1 2026
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Get in touch with a member of our team
Justin Fried Managing Director APAC justin.fried@tmxtransform.com +61 412 070 858
Stefanie Frawley Executive Director, Property stefanie.frawley@tmxtransform.com +61 402 326 914
Charlotte Jordan Executive Director, Supply Chain charlotte.jordan@tmxtransform.com +61 423 007 839
Nick Ingleby Executive Director, Project Services nick.ingleby@tmxtransform.com +61 448 332 815
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