8 Based on projects under way and a sustained period of low vacancies driving rents higher, we expect completions to ramp up in 2023 and remain historically high in 2024 at around 880,000 square metres per annum. We already know of around 30 projects, for a collective 970,000 square metres and are confident more will emerge. Material shortages and construction cost pressures are likely to continue for the next 12 to 18 months, challenging, but not derailing project delivery. We expect the recent mixture of pre-leases and spec construction to continue as the major developers look to capture user requirements with both longer and shorter turnaround times. Beyond the 2024 financial year, we forecast industrial property completions will gradually fall back closer to the long run average, crimped by moderating demand and moderately higher vacancies. There are sufficient stocks of serviced vacant land to accommodate our near-term supply forecasts. More serviced land will be needed to allow for the bulk of post-2023 completions. The Mamre Road precinct will allow more projects as land is serviced. Further out, some of the precinct plans for the Aerotropolis have just been released, but contributions are yet to be finalised. It is likely that industrial development here will coincide with the 2026 Airport opening. Supply outlook Sydney industrial demand and new supply Industrial Market Monitor | 2nd Half 2022
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