ISSUE 193 | JULY 2026 | 02 9630 8000 Disclaimer Notice: Neither Bawdens, nor the publishers and editors of articles in this issue accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. All the information contained in this publication has been provided to us by various parties. We do not accept any responsibility to any person for it’s accuracy and do no more than pass it on. All interested parties should make and rely upon their own enquiries in order to determine whether or not this information is in fact accurate. Customised relevant marketing means maximum results. We are the only agency with real time database management. Instagram Facebook LinkedIn YouTube Simply search | PAGE 12 MARKET INSIGHT SPECIAL 2026 Industrial Incentives Review Bawdens is Sydney’s leading specialist industrial property agency. In the first of a two-part study, we recently released private client research identifying changes in rent-free period incentives granted by lessors to lessees during the 2025/2026 financial year as compared to the previous year. The research identified all lease transaction incentives granted during a three-month period in the subject year. A comparative study time and data set was also identified for the 2024/2025 financial year. All analysed transactions involved properties with a gross lettable area of less than 2000m². The results can be seen in the table below. To the end of the financial year 2025, the average rent-free period is 1.1 months. To the end of financial year 2026 (YTD), the average rent-free period is 1.8 months. Despite industrial SME space remaining at record lows, incentives in 2026 have increased by 36% since 2025. Profit margin pressure, inflation and declining productivity are impacting confidence and forcing SME businesses to reflect before acting. This is also impacting vacancy periods.
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