Record 1.49 million sqm of industrial take-up as national vacancy falls to 4.6 per cent

• Record demand: Gross take-up increased 20 per cent to a record 1.49 million sqm in Q3 2026.

• Tighter vacancy: National vacancy fell from 4.8 per cent to 4.6 per cent, with prime vacancy down from 4.2 per cent to 3.7 per cent.

• Easing supply: Completions of 280,400 sqm were the lowest quarterly total since Q3 2021.

SYDNEY, 14 October 2026: Despite falling consumer confidence and economic uncertainty, gross take-up across Australia’s five tracked industrial markets increased 20 per cent to a record 1.49 million square metres (sqm) in Q3 2026, surpassing the previous record of 1.28 million sqm set in Q4 2023 by 16.6 per cent, according to JLL Research.

Large pre-lease commitments underpinned the result, running 132.9 per cent above the ten-year pre-lease average. Transport, Postal and Warehousing and Retail Trade occupiers accounted for 66.7 per cent of take-up. Sydney set its own record of 630,500 sqm, 23.3 per cent above the previous high set in Q2 2020, including 417,700 sqm of pre-commitments.

According to Annabel McFarlane, Head of Strategic Research, Australia, the confidence rests mainly with the larger third-party logistics providers, large retailer and the data centre ecosystem. “Whilst the headline figures are strongly positive, behind these headlines the story is mixed,” said Ms McFarlane.

“Pre-lease commitment activity has been dominated by large tenants, who are focused on increasing supply chain efficiency across their operations, incorporating the latest automation and robotics systems into new developments that will be completed in coming years. Height is a big driver of operational efficiency and older buildings can’t be automated cost effectively. Smaller operators are not as bullish as the larger traders,” said she said.

“We also found that while suppliers to the data centre sector are contributing to industrial sector demand, the ecosystem around data centre construction is also contributing to the strong results for the industrial sector,” said Ms McFarlane.

National vacancy fell from 4.8 per cent to 4.6 per cent, the second consecutive quarterly decline. Prime vacancy fell from 4.2 per cent to 3.7 per cent, and net absorption was positive for prime and super prime stock. Sydney and Perth recorded the largest falls, each 0.4 percentage points, to 5.4 per cent and 1.8 per cent respectively. Perth remains the tightest market nationally.

Completions fell 51.5 per cent to 280,400 sqm, the lowest quarterly total since Q3 2021, as the speculative supply wave tapers. Of the stock under construction nationally, 70.7 per cent is pre-committed.

However, conditions were not uniform. Vacancy rose in Brisbane, to 4.8 per cent from 4.5 per cent, and in Adelaide, to 4.3 per cent from 3.8 per cent. Investment sales fell 47.7 per cent after a record second quarter but remain 68.6 per cent above the 10-year average.

According to Nathan Bingham, Head of Industrial and Logistics - Australia & New Zealand, “Construction has completed at several Brisbane sites, which explains the vacancy figures from Queensland. We would expect that to be a short-term situation in the lead-up to the Olympics,” said Mr Bingham.

“Whilst we have seen moderating demand for existing space over the quarter, volumes remain well above average. Manufacturing take up for YTD 2026 is already double the historical annual average for this industry segment. Demand from mid-tier logistics groups has picked up over the quarter as they expand or reposition space requirements for new contracts ahead of end of year sales,” said Mr Bingham.

“While some moderation was expected after a record second quarter, the resilience of investor demand for Australian industrial assets from both domestic and international capital stands out,” said Ben Hegarty, Head of Logistics & Industrial Capital Markets.

“Data centres, infrastructure growth and demographic momentum are creating multiple demand channels. While investors continue to monitor the economic backdrop, they are clearly prepared to back well-positioned sites, particularly in the gateway markets of Sydney and Melbourne,” said Mr Hegarty.

Sydney
Sydney remains the market with the highest vacancy nationally at 5.4 per cent, but conditions are tightening, with the rate down from 5.8 per cent in Q2 across 23.6 million sqm of stock. Demand was the standout. Gross take-up reached 630,500 sqm, 147.4 per cent above the ten-year average, and 417,700 sqm of that came from pre-commitments. Completions were 99,600 sqm, 42.4 per cent below the 10-year average. Rental growth was subdued at 0.1 per cent for the quarter.

Melbourne
Melbourne is Australia’s largest industrial market at 30.2 million sqm, with vacancy of 4.7 per cent, down from 4.9 per cent in Q2. Gross take-up was 441,800 sqm, 39.8 per cent above the 10-year average, while completions of 58,700 sqm were 69.0 per cent below it. Rents grew 0.8 per cent over the quarter, driven by increases in the City Fringe.

Brisbane
Brisbane is one of two markets where vacancy rose, to 4.8 per cent from 4.5 per cent in Q2 2026, across 14.0 million sqm. Demand was still strong. Take-up of 298,700 sqm was 78.4 per cent above the 10-year average and the highest quarterly total since Q3 2023, with pre-leases making up 64.1 per cent of it. Completions were 79,100 sqm, 24.3 per cent below the 10-year average. . Rents grew 1.5 per cent over the quarter.

Perth
Perth has the lowest vacancy in the country at 1.8 per cent, down from 2.2 per cent, across 7.7 million sqm. Gross take-up was 85,000 sqm, 41.1 per cent above the 10-year average, and completions of 32,800 sqm were 9.9 per cent below it. Rents were unchanged over the quarter.

Adelaide
Adelaide’s vacancy rose to 4.3 per cent from 3.8 per cent last quarter, across 5.7 million sqm. Take-up was 32,300 sqm, 34.6 per cent below the 10-year average and 74.9 per cent lower than the strong Q2, and completions of 10,300 sqm were 68.5 per cent below the 10-year average. Adelaide recorded the strongest quarterly rental growth of the five markets, at 2.1 per cent.

Why did national industrial vacancy fall?
 

Vacancy fell from 4.8 per cent to 4.6 per cent as completions slowed and occupiers absorbed more existing space.

Which markets saw vacancy rise?
 

Brisbane, to 4.8 per cent, and Adelaide, to 4.3 per cent.

What happened to rents?
 

Growth was mixed. Quarterly rental growth was 2.1 per cent in Adelaide, 1.5 per cent in Brisbane, 0.8 per cent in Melbourne and 0.1 per cent in Sydney. Perth was unchanged. Incentives were broadly stable.

How does JLL Research measure vacancy?
 

It tracks all industrial buildings over 5,000 sqm in Sydney and Melbourne and over 3,000 sqm in Brisbane, Perth and Adelaide, and includes sublease space in total vacancy.