Cushman & Wakefield sees Australia industrial vacancy normalizing as occupier leverage improves

Cushman & Wakefield flagged a rebalancing in Australia’s industrial market in 2026 as vacancies normalize, improving tenant leverage.

Vacancy rose to 4.2% in Melbourne, 3.7% in Sydney, 3.5% in Brisbane; Perth stayed tight at 2.2%, Adelaide at 2.7%.

Prime rent growth slowed to 2.8% nationally, the weakest pace since late 2020; incentives widened to 12.5%-23% in Sydney, up to 30% in Melbourne.

Demand remained resilient, with 675,000 sqm leased in Sydney, 770,000 sqm in Melbourne in the first half.

Developers turned more cautious as pipelines shrink, shifting toward pre-lease-led projects; the firm warned supply could tighten again within two to three years.