Darwin Darwin prime industrial market indicators Darwin Net face rent ($ sqm) $110 Incentive (%) 12.5 Yield (%) 7.5 Capital value ($ sqm) $1,467 36 The economic improvement is yet to flow through to demand for larger industrial property, particularly buildings greater than 1,000 square metres. Indeed, there are a limited number of occupants (as owner-occupiers or tenants) actively looking for industrial property space in Darwin. Amongst those who are, small scale trades businesses are the most prominent and some transport groups, with a focus on servicing the local population more generally. There is no shortage of vacant properties for occupants to choose from, with options available above and below 1,000 square metres. However, the bulk of options are tilted towards lower quality properties with relatively few prime buildings vacant. There was no change in prime industrial rents over the six months to June 2022, although a shortage of market evidence means that indicators are estimates only. Average prime industrial face rents averaged around $110 per square metre. There has also been no change in net rents for secondary buildings, averaging around $80 per square metre as owners with vacant buildings look to attract tenants. Leasing incentives also remained stable the first half of 2022, within a range of 10 per cent to 15 per cent, varying depending on the length of the lease. Leasing market The Northern Territory economy (as measured by State Final Demand – SFD) started this year in a positive manner after a long period of lacklustre growth following the winding down of the massive $37 Ichthys LNG project. The territory has navigated the impacts of the pandemic waves well, with relatively mild impacts compared to most other states. This year, public demand has made a sizeable contribution to growth in the territory, more than offsetting other drags. Industrial Market Monitor | 2nd Half 2022
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