ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 9 MARKET INSIGHT SPECIAL Industrial Market Activity Reacts to Past Inflation Pressures In the second of a two-part study, leading SME Industrial Property company Bawdens continues to identify factors that influence profit margins. In Issue 186, the firm identified that the lag effects of inflation impacted confidence, and so the number of sales even through a period of falling interest rates (see page 12). In this issue, the company identified the total number of enquiries received annually from the internet portals, Commercial Real Estate (CRE) and Real Commercial (REA), adjusted for differences in the total number of properties marketed for lease or sale each year. Again, despite both inflation and interest rates falling since 2023, total enquiries received in 2023 fell 29% from 2022. In 2024, the fall in total market activity, as measured by total enquiries received for the year, stabilised from 2023, as businesses focused on adjusting to profit margin pressure. A recovery in confidence, and so enquiry activity, is not likely until 2026 as businesses make further adjustments to manage declining productivity and adopt a “wait and see” approach to 2026. Asset Management Vacancy Rate Office Industrial Retail 3.28% 0.59% 3.57% BAWDENS ASSET MANAGEMENT FOR LEASE Seven Hills 278m2 approx. Modern Industrial Warehouse • Good truck access • Motorised roller shutter • Air-conditioned office • Easy access to M2 & M7 Motorways • Flexible E4 Industrial zoning Monjer Khan: 0422 753 262 Daniel Su: 0415 181 411
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