INSIDE THIS ISSUE OF INDUSTRIAL PROPERTY NEWS Bawdens analyses SME industrial leasing data to reveal resilient rental growth alongside rising incentives impacting net effective returns. ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 2 MARKET INSIGHT SPECIAL The Sydney SME Industrial Rental Survey Bawdens is one of Sydney’s leading corporate property agents specialising in providing investors and small and medium enterprises with the very best insights to help them make quality commercial decisions today. In this issue, we identify what net face rentals were actually obtained across a sample of transactions totalling 180,000m² for the financial years 2024, 2025 and 2026 to date. The result can be seen in the table below. The research reveals that net face rentals have demonstrated resiliency for small and medium enterprise space (that is space with an area of less than 750m²), with average rentals in 2026 for the year to date climbing from $196 per square metre in 2025 to $208 per square metre, an increase of 6% year on year. However, net effective lessor cash flows have been compromised in 2026, with average rent-free incentives increasing from 1.1 months in 2025 to 1.8 months in 2026, an increase of 36% year on year (refer to our 2026 Industrial Incentives Review study on page 9 of this edition of Industrial Property News). The Sydney SME Industrial Rental Survey Bawdens is one of Sydney’s leading corporate property agents specialising in providing investors and small and medium enterprises with the very best insights to help them make quality commercial decisions today. In this issue, we identify what net face rentals were actually obtained across a sample of transactions totalling 180,000m² for the financial years 2024, 2025 and 2026 to date. The result can be seen in the table below. The research reveals that net face rentals have demonstrated resiliency for small and medium enterprise space (that is space with an area of less than 750m²), with average rentals in 2026 for the year to date climbing from $196 per square metre in 2025 to $208 per square metre, an increase of 6% year on year. However, net effective lessor cash flows have been compromised in 2026, with average rentfree incentives increasing from 1.1 months in 2025 to 1.8 months in 2026, an increase of 36% year on year (refer to our 2026 Industrial Incentives Review study on page 9 of this edition of Industrial Property News). 192 196 208 190 192 194 196 198 200 202 204 206 208 210 2024 530m² 2025 505m² 2026 425m² Average Net Rental Year and Average Building Area Ben Rodriguez: Director Asset Management,Joumana Tarabay: Director Asset Management, Robert Ally: Director and Terry Saba: Director
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