Just over 1 million square metres of sub-5000 square metre industrial stock is currently available in the Perth metropolitan market, according to a new survey from Ray White Commercial (WA).
The industrial market may be faring the best of the commercial markets due the growing need in the storage, logistic and transport space in the wake of the pandemic, but new data from Ray White Commercial (WA) indicates there has been an increase in vacancy across Perth's sub-5,000 square metre industrial leasing market in 2020.
A survey of sub-5000 square metre industrial stock across the Perth Metropolitan area found that just over 1 million sqm of stock is currently available in the market, signally a rise from April, where 930,000sqm was recorded and up 11.57 per cent on October 2019 results.
According to Ray White Commercial (WA), which has conducted the survey for the past five years, vacancies have increased across all precincts over the course of 2020 with the major markets accounting for these listings remaining similar.
Joint Managing Director Chris Matthews said it was not surprising that largest size range of 1,501-5,000sqm had
grown its vacancies, recording 23.75 per cent in October 2019 and now representing close to 30 per cent of the total vacancies.
"We have seen many businesses who may have reduced their workforce seek smaller accommodation options or many looking to reduce their overheads by relocating to smaller premises," he said.
"The average size of vacancies currently sits at 1,122sqm, 960sqm and 692qm for the East, South and North respectively.
"On average these sizes are 11.01 per cent larger than 12 months ago."
The report notes pandemic has resulted in many unprecedented movements affecting both tenants and landlords with managing rental relief and tenant defaults two of the main byproducts of the pandemic.
Mr Matthews said while the growing volume of stock being added to the market would traditionally impact rents, Ray White Commercial (WA) had found the government support being provided coupled with "very limited" Covid19 cases and the hard border policy had resulted in a stimulus bubble within Western Australia.
"To date, we have seen a limited change in average rents however stock absorption over the last several months is positive," he said.
"This increased demand should not see a lift in rents just yet however incentives on offer for premium and A grade industrial facilities will become tighter for tenants and more favourable to landlords than they have been over the past several years."
Click here to download a copy of the report.
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