> **来源：[研报客](https://pc.yanbaoke.cn)** # Sydney Industrial State of the Market Q4 2025 This report provides a precinct-by-precinct quarterly update of the Sydney industrial market Click here to subscribe # Leasing overview # Moderate rental growth amid high incentives and vacancy - Prime industrial rents across Western Sydney increased by $2.4\%$ over 2025, ranging between $180 -$ 290/sqm across the different precincts. - Incentives continued to rise, reaching a historical high of $21\%$ , which resulted in net effective rents declining by $2.6\%$ in 2025 in Western Sydney. Leasing volumes were strong, lifting $34\%$ y/y to total 1.3 million sqm in 2025, driven by some large pre-commitments. The Outer West and South West accounting for $88\%$ of take up. - Vacancy climbed to a new high in Q4 2025, reaching 768,874sqm, with sublease space making up $23\%$ of total availability. Sydney industrial vacancy By precincts, floorspace in '000sqm, 5,000sqm+ Sydney industrial take-ups Western Sydney net face rents and incentives Sydney industrial supply By types, '000sqm, completed 2020-2026 (f) Industrial Market Indicators - Q4 2025 <table><tr><td>Precinct</td><td>Prime net face rent range ($/sqm)</td><td>% change q/q</td><td>Land values <5,000 sqm ($/sqm)</td><td>Land values 1-5 ha ($/sqm)</td><td>Vacancy (%)</td><td>Core market yield</td></tr><tr><td>Outer West</td><td>180 - 240</td><td>0.0</td><td>1,383</td><td>1,300</td><td>3.1%</td><td>5.00 - 5.75</td></tr><tr><td>South West</td><td>180 - 245</td><td>0.0</td><td>1,155</td><td>1,160</td><td>3.8%</td><td>5.00 - 6.00</td></tr><tr><td>Inner West</td><td>195 - 290</td><td>3.8</td><td>1,538</td><td>1,425</td><td>1.7%</td><td>4.75 - 5.50</td></tr><tr><td>South</td><td>350 - 475</td><td>0.0</td><td>4,050</td><td>3,000</td><td>2.8%</td><td>4.75 - 5.00</td></tr></table> Source: Knight Frank Research # Investment overview # Strong offshore capital participation in 2025 - Investment activity totalled \(4billion in 2025, marking a slight uplift from 2024. Cross-border investors were the most active buyer group, contributing around half of total transaction volume. - Notable transactions included BGO, in partnership with Centuria, acquiring three warehouses in the Outer West from Goodman for $201 million. PGIM Real Estate and Cadence Property purchasing the St Mary's Intermodal Facility from Pacific National for$ 145 million; Wentworth Capital acquiring Rydalmere Metro Centre from Dexus for $152 million. - Prime yields compressed by 13bps over the year, averaging $5.39\%$ across Western Sydney. Sydney industrial land values Sydney industrial investment volumes Sydney industrial capital values Sydney industrial yields Recent Significant Sales <table><tr><td>Property</td><td>Precinct</td><td colspan="2">Price ($m) Size (sqm)</td><td>$/sqm</td><td>Purchaser</td><td>Vendor</td><td>Yield (%)</td><td>WALE</td></tr><tr><td>63 Jedda Rd, Prestons</td><td>South West</td><td>108.0</td><td>22,492</td><td>4,802</td><td>Aliro Group</td><td>Blackstone</td><td>5.13</td><td>9.7</td></tr><tr><td>5-9 Lancaster St, Ingleburn</td><td>South West</td><td>39.8</td><td>10,900</td><td>3,651</td><td>Realterm</td><td>Oakvell Property</td><td>5.14</td><td>2.6</td></tr><tr><td>32 Sargents Rd, Minchinbury</td><td>Outer West</td><td>77.5</td><td>20,059</td><td>3,864</td><td>Busways</td><td>Dexus</td><td>5.13</td><td>1.1</td></tr><tr><td>30 Clay Pl, Eastern Creek</td><td>Outer West</td><td>39.0</td><td>6,183</td><td>6,308</td><td>Premiair</td><td>FIFE Capital</td><td>4.75</td><td>0.4</td></tr></table> # Outer West Vacancy reaches new high 682k Sqm leased in 2025 370k Sqm vacancy in Q4 \$213/sqm Prime net face rent Stable q/q Stable y/y 21.4% Prime incentive Stable q/q Up 430 bps y/y 442k Sqm new supply completed in 2025 67% total new supply 5.31% Prime yield Tightening 19 bps y/y # KEYTRENDS Leasing activity in Outer West totalled 641,000 sqm in 2025, sitting $14\%$ above the 2025 volume. This is supported by $63\%$ existing space and $30\%$ pre-commitments. - Transport/logistics $(29\%)$ , retailers $(22\%)$ and manufacturers $(21\%)$ led the annual take-up. Major commitments include Aldi's prelease of c.87,000 sqm in Bradfield, Kimberly Clark securing c.43,000 sqm in Horsley Park and IVE Group taking c.42,000 sqm in Kemps Creek. - Vacancy continues to rise in Q4, with sublease vacancy accounting for $40\%$ of total availability. - Net face rents remained stable since Q4 2023, prime rents held between $180-$ 240/sqm. - A total of 442,000 sqm of new space was delivered in 2025, comprising $59\%$ pre-committed space and $41\%$ speculative developments. The average prime yield tightened 19bps to $5.31\%$ in 2025. Outer West industrial vacancy '000sqm available space Outer West net face rents Outer West land values Outer West industrial supply '000sqm, completed 2016-2026(f) # South West Solid leasing activity throughout 2025 # 430k Sqm leasing take-up in 2025 # 226k Sqrm vacancy in Q4 Share of $29\%$ total vacancy # \$205/sqm Prime net face rent Stable q/q Stable y/y # 21.7% Prime incentive Stable q/q Up 400 bps y/y # 170k Sqm new supply completed in 2025 Share of $26\%$ total new supply # 5.43% Prime yield Tightening 23 bps y/y # KEYTRENDS - Occupier activity strengthened in the South West in 2025, with 420,370 sqm of take-up, accounting for $36\%$ of total leasing volumes across Sydney. - Transport/logistics occupiers led the demand $(34\%)$ , followed by manufacturers $(31\%)$ and retailers $(26\%)$ . Significant deals include Kmart preleasing c.104,000 sqm in Moorebank and Jennmar committing c.31,000 sqm in Smeaton Grange. Vacancy edged down to 226,030 sqm in Q4 2025, with speculative developments representing $35\%$ of available space. - Average net rents remained flat, with prime holding at $205/sqm and secondary at$ 170/sqm. Incentives averaged 22% across both prime and secondary assets. - New supply totalled 170,000 sqm, with speculative developments driving $80\%$ of completions. Prime yields compressed by 23bps over the year to $5.43\%$ . South West industrial vacancy South West net face rents South West land values South West industrial supply # Inner West # Precinct remains tightly held # 118k Sqm leasing take-up in 2025 # 89k Sqrm vacancy in Q4 Share of $12\%$ total vacancy # \$241/sqm Prime net face rent Up by $3.8\%$ q/q Up by $6.9\%$ y/y # 19.9% Prime incentive Up by 175 bps q/q Up by 413 bps y/y # 46k Sqm new supply completed in 2025 Share of $7 \%$ total new supply # 5.13% Prime yield Stable q/q Down by 13 bps y/y # KEYTRENDS - Tenant demand in Inner West eased by $23\%$ in 2025, with total take-up of 118,184 sqm. - Retailers accounted for $31\%$ of leasing activity, followed by transport/logistics occupiers $(21\%)$ . Notable transactions include Amazon taking c.10,000 sqm in Chullora. - Vacancy increased to 88,814 sqm in Q4 2025, representing $12\%$ of total vacancy across Sydney. - Prime net face rent rose $6.9\%$ over the year, averaging $\$241/\mathrm{sqm}$ , while secondary rents remained steady at $\$192/\mathrm{sqm}$ . Incentives increased to $20\%$ for both prime and secondary space. - New completions in 2025 added 46,000 sqm to the market, including Goodman's Chullora Industrial Hub (c.25,000 sqm). - Yields were stable, holding at $5.13\%$ for prime and $6.09\%$ for secondary. Inner West industrial vacancy '000sqm available space Inner West net face rents $/sqm Inner West land values $/sqm Inner West industrial supply '000sqm, completed 2016-2026 (f) # 30k Sqm leasing take-up in 2025 # 84k Sqm vacancy in Q4 # $405/sqm Prime net face rent Stable q/q Stable y/y # 15.0% Prime incentive Up 250 bps q/q Up 500 bps y/y # OK No new major supply in 2025 # 4.88% Prime yield Stable q/q Stable y/y # KEYTRENDS Leasing demand subdued in 2025, with 29,937 sqm of activity recorded, $55\%$ below the three-year average. - Major tenant commitments include Glassons securing a c.7,800 sqm speculative facility in Banksmeadow and CSR leasing c.3,200 sqm in Alexandria. - Net face rents held steady over the year, averaging $405/sqm for prime and$ 318/sqm for secondary, while incentives increased to 15%. - There were no new completions ( $>5,000$ sqm) added to the market in 2025. Yields have remained tight since Q3 2023, averaging $4.88\%$ for prime and $5.88\%$ for secondary. South industrial vacancy '000sqm available space South net face rents South land values South industrial yields # Data Digest Prime Grade: Asset with modern design, good condition & utility with an office component 10-30%. Located in an established industrial precinct with good access. Secondary Grade: Asset with an older design, in reasonable/poor condition, inferior to prime stock, with an office component between 10-20%. Take-up: Take-up represents the absorption of existing assets, speculative developments, or pre-commitments # Vacancy Methodology: This analysis collects and tabulates data detailing vacancies $(5,000\mathrm{m}^{2 + })$ within industrial properties across all of the Sydney Industrial Property Market. The buildings are categorised into 1) Existing Buildings - existing buildings for lease. 2) Speculative Buildings - buildings for lease which have been speculatively constructed and although have reached practical completion, still remain vacant. 3) Spec. Under Construction - buildings for lease which are being speculatively constructed and will be available for occupation within 12 months. We like questions, if you've got one about our research, or would like some property advice, we would love to hear from you. Research & Consulting Ben Burston +612 9036 6756 ben.burston@au.knightfrank.com Industrial Logistics, NSW Orlando Maciel +61290366728 orlando.maciel@au.knightfrank.com Research & Consulting Marco Mascitelli +61290366656 marco.mascitelli@au.knightfrank.com Industrial Logistics, Investments Angus Klem +6129028 1110 angus.klem@au.knightfrank.com Research & Consulting Naki Dai +61290366673 naki.dai@au.knightfrank.com Valuation & Advisory, NSW Jack Needham +61290366663 jack.needham@au.knightfrank.com # Recent Research aannnnnne aannnnnne annnnnne aannnnnne aannnnnne annnnnne aannnnnne aannnnnne annnnnne Australian Capital View Q3 2025