0 100 200 300 400 500 600 700 -12 -8 -4 0 4 8 12 16 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 % annual change $ million Forecast Source: ABS State final demand (left axis) Total approvals (right axis) Based on projects under construction and approvals data, industrial completions this year are set to exceed lasts years volume and rise well above the long run average. Most of these projects are already committed with relatively little speculative space underway. The largest projects under construction or at site works include: • Two warehouses for a combined 41,000 square metres at the Roe Highway Logistics Park, Kenwick; • A circa 30,000 square metres warehouse at 58 Clifford Street, Maddington; • A 14,000 square metres warehouse on Sparton Street, Jandakot Airport, pre-committed to Marley Spoon; • A 13,000 square metres warehouse on Centurion Place, Jandakot Airport; • A 12,000 square metres warehouse at 204 Bannister Road, Canning Vale, under development for Centuria Industrial REIT; • A circa 9,000 square metres warehouse under construction at Lodge Drive East, Rockingham; and • Logos are reportedly pushing head with a circa 10,000 square metres warehouse at the Hazelmere Logistics Estate after securing a pre- commitment from Inghams. In tandem with this project, it looks likely that a 19,000 square metres warehouse will start imminently on a speculative basis. Looking further forward, a recovery in supply is expected, as approvals flow though to commencements. Even so, the strength of demand suggests vacancies will remain low, driving further rents rises. In the process, this will make it more appealing for businesses to commit to newer, more efficient premises via the pre-lease market. Supply outlook Perth demand and industrial building approvals 25 Industrial Market Monitor | 1st Half 2023
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