Latest Industrial Vacancy Rates Across Australia

JLL Research's comprehensive Industrial Vacancy and Supply update reveals contrasting trends across Australia's industrial property landscape as of Q2 2025. While East Coast vacancy increased to 5.2% across 66.8 million sqm of industrial stock, on the West Coast, Perth maintains Australia's lowest industrial vacancy rate at just 2.0%.

• Perth: 2.0% vacancy (lowest nationally) across 7.5 million sqm
• Sydney: 5.3% vacancy across 23.1 million sqm
• Melbourne: 4.7% vacancy across 30.2 million sqm (Australia's largest market)
• Brisbane: 4.3% vacancy across 13.5 million sqm

• Perth's East: Australia's tightest industrial precinct at 0.9% vacancy
• Melbourne's South-East: 2.1% vacancy (tightest eastern seaboard market)
• Sydney's Outer North West: 2.5% vacancy, continues to attract "sticky" corporate occupiers

• Sub-lease vacancy increased in Sydney and Melbourne, now making up 21% and 23% of vacant space in each market, respectively
• Brisbane's vacancy trend shifted upward, driven by speculative completions
• Perth maintained the lowest vacancy nationally

The Q2 2025 vacancy data reveals significant variations across Australia's industrial landscapes. In Melbourne, the South-East maintains its position as the most sought-after location on the eastern seaboard despite an increase in vacancy to 2.1%. This area continues to benefit from its strategic connectivity to Melbourne's growing population base and limited land availability.

Sydney's market shows clear geographical preferences, with the Outer North West precinct maintaining low vacancy at 2.5%, driven by proximity to skilled workers and a restricted future supply pipeline of just 120,000 sqm under construction. 

Brisbane's vacancy increased to 4.3%, with notable variations across precincts. The Southern precinct, containing 62% of Brisbane's total stock, continues its expansion through greenfield development, supported by South-East Queensland's strong population growth. 

Perth’s East precinct benefits from proximity to Perth Airport and major arterial networks, supporting its below 1% vacancy. It also has the most substantial development pipeline among Perth's industrial precincts, with 164,000 sqm under construction which is 40% pre-committed, potentially impacting future vacancy in this area.

Sub-lease availability shows notable regional variations. Sub-lease space makes up 21% of vacant area in Sydney, while Melbourne's sub-lease space represents 23% of its vacant area. Sub-lease space is low in Brisbane and Perth (less than 1% of vacant area), indicating strong occupier commitment in these markets.

JLL's analysis reveals that medium-to-large buildings (10,000-45,000 sqm) record marginally higher vacancy rates than smaller or very large facilities, providing crucial insights for both tenants and investors developing their industrial real estate strategies.

Analysing industrial vacancy by building grade reveals that most of Australia’s industrial vacancy is within older, secondary grade buildings. However, elevated levels of speculative development completions over 2024 have contributed to an increase in vacancy within super-prime stock across East Coast markets.

Development activity varies significantly across markets, with pre-commitment levels playing a crucial role in determining future vacancy expectations. Upcoming supply is concentrated in growth corridors where land availability supports development, contrasting with land-constrained infill locations where new supply is limited.

Sydney's vast Outer Central West precinct has over 444,000 sqm currently under-construction with 72% of this space already absorbed. Melbourne’s under-construction stock is evenly spread across the South East, West and North precincts, although absorption rates differ. In the North, 96% of area under-construction is pre-committed, minimising supply-side risks to future vacancy. Brisbane's most active development precinct is the Southern corridor, where greenfield sites provide speculative development opportunities with over 154,000 sqm of new stock under-construction.

JLL's industrial real estate market analysis anticipates stabilising vacancy across east coast markets as supply delivery moderates through 2025. Urban infill locations with limited land availability, such as Melbourne's South East and Sydney's Inner West, will continue to support strong investor interest due to their consistently low vacancy profiles and restricted future supply potential.

JLL Research tracks over 73.8 million sqm of industrial stock nationally, providing crucial market insights into Australia’s industrial market dynamics by precinct, suburb, and building size.