ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 4 Kings Park Baulkham Hills Padstow Clyde Seven Hills Guildford Riverstone South Windsor Rouse Hill Ryde Bawdens Deals Done LEASED BY LEASED BY SOLD BY SOLD BY LEASED BY SOLD BY SOLD BY LEASED BY LEASED BY SOLD BY MARKET INSIGHT SPECIAL SME Industrial Outlook for 2025 Buildings utilised by Small Medium Enterprises (SME) are typically thought of as buildings comprising an area of less than 3000m². Leasing demand for these buildings in the last calendar quarter of 2024 remained patchy, weakened by falling consumer spending which in turn impacted the expansion plans of some businesses. Not withstanding this we observe that businesses have adjusted to expectations that interest rates may remain higher for longer, resulting in increasing vacancy periods and days on market in 2025 as enquiries take longer to make a decision. As for 2024, 2025 will see a continuation of the shortage of buildings available to purchase below 6000m². This is expected to result in prices remaining unchanged throughout the year. In 2024 SME vacancy in core locations remained at historic lows of sub 1%. This is expected to soften with vacancy to increase to 1.5% – 2% throughout the year. The rate of rental growth in 2024 slowed as the year progressed. In 2025 this is expected to continue as the vacancy rate increases. Rental Growth in the order of 3% – 5% is likely with effective growth in some locations likely to be flat as incentives increase.
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