ISSUE 189 | MARCH 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 Profit Margin Pressure and Declining Productivity Impacting Industrial Property Demand Bawdens is Sydney’s leading SME-focused industrial property specialist. The firm, with $3.5 billion in assets under management, routinely releases unique research papers for the benefit of its clients and customers. In this issue, we bring together the findings from recent papers that revealed how interest rates affect industrial sales and how to correctly price industrial property in 2025, to reveal how profit margin performance and productivity are critical to market stability. Since 2024, despite interest rates falling from about 7.4% to about 6%, sales at the firm as a percentage of all deals fell from 22% to 15%. Since 2023, despite inflation falling from 7.0% to 2.4% in 2025, business confidence has noticeably declined. The decline in confidence can be understood as the outcome of the lag effects of increasing costs to businesses from the inflation experienced in 2023 and falling productivity today. Businesses are currently seeing this in their financial statements as falling profit margins. Correctly pricing property to meet current conditions will remain very important for successfully leasing or selling in 2025 and 2026.
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