“We’ve seen significant growth in rents across industrial, largely because developers are having to lift their pre-lease rents to account for higher land values and escalating construction costs,” Tiller said.

Private investors are also taking advantage of the demand with one offering being an expansive landholding in Fairfield in Sydney’s west has been listed for sale, which is expected to generate interest exceeding $30 million.

The 28,800 square metre site at 311 The Horsley Drive which has a flexible B6 Enterprise Corridor zoning, permitting warehousing and distribution, with no height restrictions on potential developments.

CBRE’s Elijah Shakir and Alex Mirzaian, and Ray Trimboli and Joe Trimboli from Savills have been appointed to the site from Newpoint Advisory.

“The site offers a unique opportunity to secure land within a supply constrained area,” Shakir said. Savills’ Trimbolli added the property site has the “ability for strong rental growth, and the flexibility to partially or completely redevelop the site”.

In the latest Dexus quarterly update to September 30, the landlord and developer reported that 127,499 square metres of industrial space was leased across 21 transactions. In addition, 3,000 square metres was leased across three transactions at industrial developments in Melbourne and Sydney.

Dexus chief executive Darren Steinberg said in the update that industrial market rent growth remains strong across the group’s core markets.

He said average incentives reduced to 9.1 per cent, “primarily driven by strong customer take up across both new leases and renewals in Sydney and Melbourne markets which continue to benefit from low supply”.

Dexus’ deals included a total of 53,449 square metres leased with an existing customer at 11-17 Distribution Drive, Truganina and a new customer at 7-9 Distribution Drive, Truganina.

The group also developed 63,600 square metres of industrial development, comprising 51,000 square metres at 107 Momentum Way, Ravenhall. Victoria and a 12,600 square metre facility at 22 Orion Road, Jandakot, Western Australia.

In Sydney, Dexus secured two leases across 6,971 square metres at Kings Park Industrial Estate in Marayong, 6,765 square metres at 9 Dolerite Way, Greystanes, 3,950 square metres and a combined 3,499 square metres at The Mill in Alexandria.

Mirvac, which is only focused on Sydney, said in its September quarterly update that the industrial portfolio continues to benefit from the exceptionally tight Sydney market, where vacancy remains below 0.5 per cent.

Mirvac head of integrated investment portfolio and chief executive-elect Campbell Hanan said continued strong leasing activity and restricted supply provides a favourable backdrop for our $1.1bn development pipeline currently underway and “we are exploring opportunities to introduce capital partners”.

Mirvac is developing its 56 hectare logistics estate, known as Aspect Industrial Estate in Kemps Creek in Western Sydney, which is targeted to be the group’s first carbon-neutral (embodied carbon) industrial development,

Colliers head of industrial Gavin Bishop and Sean Thompson recently sold a large-scale logistics facility in NSW’s St Marys, Sydney to Centennial, which it will reconfigure and further develop into a prime, multi-unit logistics estate, with an estimated end value of $65 million.

Bishop said demand remains strong with industrial and logistics leasing deals of 900,000 square metres were recorded in th third quarter 2022, taking the year-to-date total to just under 3.4 million square metres.