Cushman & Wakefield forecasts Australian industrial vacancy falls to 2.2% in 2029
CWK•Cushman & Wakefield forecasts Australian industrial vacancy will fall to about 2.2% in 2029. Net absorption is forecast to rise from 1.1 million square meters in 2026 to 1.9 million in 2027, still below the 10-year average.
1. Vacancy outlook
Australian industrial vacancy is forecast to tighten from 2027 and reach a low of about 2.2% in 2029. Warehouse deliveries could total 3.1 million square meters between the third quarter of 2026 and the fourth quarter of 2027, including 1.1 million square meters requiring pre-commitments.
2. Demand and development
Gross take-up approached 3.4 million square meters year-to-date in 2026, while net absorption remained below 770,000 square meters, reflecting relocations rather than expansion. Net absorption is forecast to rise from 1.1 million square meters in 2026 to 1.9 million in 2027, remaining below the 10-year average. Development feasibility recovery has shifted to near 2029, with economic rents 10% to 25% above market rents in several key markets.
