What: Sydney has the most expensive rents in the Australian industrial market at around $250/sq m to $400/sq m
Why: Sydney’s topography and development constraints are affecting costs
What next: High rents will push occupiers to areas far from ports and major transport routes
Sydney has the most expensive rents in the industrial property market, with rents outpacing every other capital city, according to a new report.
TMX Transform said in Across the Network that net face rent in Sydney ranges from $250/sq m to $400/sq m, with south Sydney pricing approaching office grade levels.
The firm notes that high rents in the Sydney area are pushing occupiers westward, farther from the port and major transport routes. It also cites Sydney’s topography and development constraints in amplifying cost pressures and tightening land supply.
Melbourne is the most affordable capital city, with rents around $135/sq m to $175/sq m. The city also has 15 to 30% incentives, the highest nationally.
Meanwhile, Perth has net face rents ranging from $150/sq m to $170/sq m, while Adelaide offers $140/sq m to $200/sq m. Brisbane rents are around $140/sq m to $180/sqm.
TMX Transform notes that costs have stabilised after several volatile years, providing greater certainty for new developments. Ambient warehouse construction costs are benchmarked at around $1,100 to $1,200/sq m, while temperature controlled and freezer facilities are higher, at around $2,700 to $3,200/sq m.
However, growing competition from data centre developments for land, labour and capital is expected to place renewed upward pressure on future projects.
“Cost escalation is now far more moderate, which allows occupiers to develop business cases with confidence. After months of testing, design, and approvals, they can land on a number they trust, and that certainty is what enables long term investment decisions to proceed,” said Angus Perry, executive director of project services at TMX Transform.
This article was originally published in Green Street News on 9 April 2026.
Read the full report of Across the Network here.