DARWIN Darwin prime industrial market indicators Darwin Net face rent ($ sqm) 110 Incentive (%) 12.5 Yield (%) 7.5 Capital value ($ sqm) 1,467 The Northern Territory economy, as measured by State Final Demand (SFD), grew at a reasonable pace last year, continuing a recovery following the winding down of the massive $37 billion Ichthys LNG project and a relatively moderate setback triggered by the pandemic. However, recent quarter on quarter growth continues to be volatile. The most recent data shows SFD jumped by almost 3.0% in Q3 2022, boosted by public demand (from road infrastructure projects and public consumption) and household spending, helped along by discretionary spending on tourism. The positive growth in SFD is yet to flow through to demand for industrial property, particularly buildings greater than 1,000 square metres. At the smaller end of the market there is also limited activity, mostly dominated by local trade groups with some new market entries and businesses looking to expand. Overall, there is no shortage of vacant properties for occupants to choose from, with options available above and below 1,000 square metres. Some specific space parameters have limited options available, but if occupants are flexible, there are plenty of industrial property options to choose from. However, the bulk of options are tilted towards lower quality properties. There was no change in prime industrial rents during 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 was 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 last year, within a range of 10% to 15%, varying depending on the length of the lease. Leasing market 30 Industrial Market Monitor | 1st Half 2023
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