ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 4 MARKET INSIGHT SPECIAL We Connect Industrial Vacancy and Business Behaviour Bawdens is Sydney’s leading small and medium enterprise industrial property specialist. In the last issue of Industrial Property News (see page 9), the firm released client research revealing that despite interest and inflation rates falling in 2024 and 2025, the demand for space from businesses, as measured by the number of enquiries received by the firm from leading property portals, Real Commercial and Commercial Real Estate, had declined. In this issue, we identify that the reduction in demand appears not to be from a contraction in activity, but rather driven by a pause in decision-making as businesses adjust behaviour to recover profit margins. To identify if businesses are downsizing, we can look at the amount of space vacant. As a percentage of all space the firm has under management, there was a small increase in the amount of space vacant during 2025 between March and June, but a decline in available space between June and October. With a vacancy rate of approximately 2.5% today, the market remains biased towards unbalanced, with any slight improvement in confidence likely to lead to demand exceeding supply. This condition is likely to persist in 2026. We Connect Industrial Vacancy and Business Behaviour Bawdens is Sydney’s leading small and medium enterprise industrial property specialist. In the last issue of Industrial Property News (see page 4), the firm released client research revealing that despite interest and inflation rates falling in 2024 and 2025, the demand for space from businesses, as measured by the number of enquiries received by the firm from leading property portals, Real Commercial and Commercial Real Estate, had declined. In this issue, we identify that the reduction in demand appears not to be from a contraction in activity, but rather driven by a pause in decision-making as businesses adjust behaviour to recover profit margins. To identify if businesses are downsizing, we can look at the amount of space vacant. As a percentage of all space the firm has under management, there was a small increase in the amount of space vacant during 2025 between March and June, but a decline in available space between June and October. With a vacancy rate of approximately 2.5% today, the market remains biased towards unbalanced, with any slight improvement in confidence likely to lead to demand exceeding supply. This condition is likely to persist in 2026. 0 0.5 1 1.5 2 2.5 3 3.5 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Telopea Fairfield Rouse Hill Smithfield Northmead Arndell Park Bella Vista St Marys Glendenning Norwest Bawdens Deals Done LEASED BY LEASED BY SOLD BY SOLD BY LEASED BY SOLD BY SOLD BY LEASED BY LEASED BY SOLD BY
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