In the latest in a series of studies Industrial Property News observed in Issue 148 that net market rentals had increased 16% in the first quarter of 2022 YOY (year on year).
Research discussed in Issue 149 revealed that 60% of new leases completed in 2022 for properties with an average building area of 311m2 had no rent free intensive.
With demand exceeding supply of available space today, in this Issue of Industrial Property News we examine if this demand has also resulted in the length of time a property is available for lease, otherwise known as ‘days on market’ has also declined.
Demand for warehousing space to lease Sydney has never been stronger.
Leading Industrial Agents Bawdens, recently completed further research in the Small Medium Enterprise (SME) space. The company recorded the number of days a study sample of properties were available for lease, being the first day the property was marketed as available until when a lease was executed by the new lessee.
The average sample building area was 343m2. The findings can be seen below.
The number of days taken to lease a property fell by fifteen (15) in June 2022 compared to June 2021, a reduction of 32%.
When taken into account that lessors are also securing net rental increases with minimal to no incentives, the inflationary defensive nature of industrial cash flows will remain keenly sought in 2022.