360 Capital Industrial Fund
Property market review
An ongoing lack of new development combined with steady tenant demand has kept the overall industrial market tight over the past six months. This has seen rents for Prime and Secondary grade stock remain stable and incentives have begun to tighten in some markets due to declining vacancy rates.
The Sydney market has experienced solid pre‐commitment demand for space at both the large and small ends of market with growing demand from retailers and distributers. Net face rental growth is forecast to track inflation over the next three years with incentives forecast to decrease gradually from the current level.
The Melbourne market has experienced strong leasing activity in the under 5,000sqm market which is expected to continue with the availability of prime stock for occupation expected to remain low. Net face rents are likely to stabilise driven by supply constraints and incentives are forecast to decrease gradually.
The Brisbane industrial market is likely to continue to benefit from mining sector and there is no evidence that recent flooding has had a substantial impact on stock levels. As a result, incentives are forecast to reduce from their current levels.
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