0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 -8 -6 -4 -2 0 2 4 6 8 10 12 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 % annual change Source: ABS State final demand (left axis) Completions (right axis) '000 sq m Forecast Based on projects underway, approvals data and a sustained period of low vacancies pushing up rents, completions to reach a record high of 1 million square metres this year, staying high at 900,000 square metres in 2024. We already know of about 50 projects that are proceeding or likely to proceed for a combined 1.54 million square metres and are confident more will emerge. Notable developments include: • The 76,000 square metres Woolworths Distribution Centre at 250 Victoria Street, Wetherill Park, due to complete in 2023; • A 73,290 square metres TTI building at 649-763 Mamre Road, within the Yards at Kemps Creek, also due for completion in 2023; and • 66,610 square metres at 804-882 Mamre Road, Kemps Creek due to complete in 2024 Material shortages and construction cost pressures are likely to continue for the next one to two years, delaying some projects. In time, these pressures should ease as supply chain disruptions normalise. Meanwhile, rapidly rising market rents are keeping pace with rents required for new builds, promoting competition amongst major developers for large pre-leases. The recent mix of pre-lease and speculative building to continue as developers look to capture both longer and shorter turnaround needs. Supply outlook Sydney demand and new supply 7 58 Harley Cres, Condell Park NSW 2200 Industrial Market Monitor | 1st Half 2023
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