In Sydney, the precinct-level vacancy rate movements were mixed, resulting in an almost unchanged blended vacancy rate over the quarter. Vacancy decreased in the Outer North West (-1.9 pps to 3.3%) and South Sydney (-0.5 pps to 8.6%). However, these decreases were counterbalanced by vacancy increases in the Outer South West (+1.3 pps to 6.8%) and the Inner West precinct (+0.3 pps to 4.1%). The vacancy rate in Sydney’s largest precinct, Outer Central West, was relatively stable over the quarter at 6.5%.
In Melbourne, vacancy trended downwards across most precincts. The largest quarterly decrease was recorded in the City Fringe precinct, which decreased 3.2 pps to 3.4% in Q2 2026. However, total stock in the precinct only represents 3.5% of Melbourne’s total industrial stock, so any movement in occupancy levels has a disproportionate impact on the vacancy rate. Vacancy also decreased in the North (-0.7 pps to 5.4%) and the South East (-0.3 pps to 4.4%) precincts over the quarter. The vacancy rate in the West precinct (5.4% in Q2 2026) has been broadly stable for the last five quarters, hovering between 5.2% – 5-4% since Q2 2025.
The largest decrease in quarterly vacancy nationally was recorded in Brisbane this quarter. The vacancy rate decreased in both the Southern (-1.4 pps to 4.2%) and the Trade Coast (-1.0 pps to 4.1%) precincts in Q2 2026. However, vacancy increased in the Northern precinct, increasing 2.1 pps to 6.4%.
The vacancy rate in the non-eastern seaboard markets of Perth and Adelaide remain lower than the national vacancy rate. Although vacancy has increased for consecutive quarters in Perth, it remains the tightest vacancy rate in Australia at 2.2%. The vacancy rate across most of Adelaide’s precincts decreased in Q2 2026, resulting in a 0.7 pps decrease to 3.8%.