Quarter Time National Industrial Q4/2018

Transcription

1 Savills Research Australia Quarter Time National Industrial Key Market Averages National Industrial N.F. Rent Market Yield IRR Cap. Value Land Value SYD West 124 (+7.4%) 5.50 (-75 bps) 7.00 (-50 bps) 2,175 (+16.0%) 725 (+34.9%) MEL West 78 (+5.4%) 6.13 (-13 bps) 7.38 (n/c) 1,400 (+25.8%) 295 (+49.4%) BRI Southside 118 (n/c) 6.38 (-25 bps) 7.25 (-150 bps) 1,725 (n/c) 313 (+5.0%) PER Core 90 (+5.9%) 6.38 (-38 bps) 8.25 (-13 bps) 1,500 (n/c) 425 (n/c) ADL North West 90 (+9.1%) 7.13 (-50 bps) 8.50 (-88 bps) 1,150 (n/c) 188 (-6.3%) Note: 12 month change shown in brackets, land values serviced & benched sites (3,000-5,000 sq m); is defined as having B Double access, 10m+ internal clearance, ESFR, 35m minimum of docks & on-grade, awnings greater than 15m Trends Detailed Sales Activity: $4.421 bn 162 Sales ($10m+) Leasing Activity 2,788,322 sq m 436 Leases (1,000 sq m+) Employment m 2.5% growth savills.com.au/research

2 Report Contents National Indicator Summary 3 Industrial Economic Drivers 5 National Sales Activity 6 National Leasing Activity 7 State Indicators and Major Activity New South Wales 8 Victoria 12 Queensland 16 Western Australia 19 South Australia 22 Shrabastee Mallik smallik@savills.com.au Director Research & Consultancy For our latest national reports, visit savills.com.au/research To join Savills Research mailing list, please research@savills.com.au Key State Contacts 26 Key Markets Average Yield and IRR vs 10yr Bond Rate 12% 10yr Bond Rate Average Yield Average IRR 10% 8% 6% 4% 2% % Key Markets Average Yield Spread over 10yr Bond Rate and IRR Multiple 600 Yield Premium over 10yr Bond Rate (bps) IRR Multiple of 10yr Bond Rate (RHS) 4.5-x x 3.5-x 3.0-x 2.5-x 2.0-x 1.5-x x Source: Savills Research savills.com.au/research 2

3 National Markets Summary - National Industrial Warehouse N.F. Rent Market Yield IRR Cap. Value Land Value SYD - South Syd 183 (+7.4%) 5.25 (-63 bps) 6.75 (-63 bps) 3,750 (+32.7%) 1,675 (+59.5%) SYD - West 124 (+7.4%) 5.50 (-75 bps) 7.00 (-50 bps) 2,175 (+16.0%) 725 (+34.9%) SYD - Cntrl West 135 (n/c) 5.25 (-100 bps) 7.00 (-63 bps) 2,250 (+11.1%) 800 (+16.4%) SYD - Nth Shore 163 (n/c) 6.00 (-75 bps) 7.50 (-88 bps) 2,625 (+7.1%) 1,075 (+48.3%) SYD - Nth West 123 (+11.4%) 5.63 (-125 bps) 7.00 (-100 bps) 1,750 (+4.5%) 700 (+21.7%) SYD - South West 118 (+4.4%) 5.38 (-100 bps) 7.13 (-75 bps) 2,075 (+13.7%) 700 (+30.2%) SYD - Outer S.W. 105 (n/c) 5.75 (-75 bps) 7.13 (-100 bps) 1,875 (+17.2%) 600 (+20.0%) MEL - City Fringe 120 (n/c) 5.88 (-38 bps) 7.50 (n/c) 2,125 (+11.8%) 1,075 (+13.2%) MEL - West 78 (+5.4%) 6.13 (-13 bps) 7.38 (n/c) 1,400 (+25.8%) 295 (+49.4%) MEL - North 75 (n/c) 6.13 (-38 bps) 7.38 (-25 bps) 1,350 (+22.7%) 363 (+31.8%) MEL - East 90 (+5.9%) 5.88 (-38 bps) 7.13 (-25 bps) 1,700 (+25.9%) 550 (+46.7%) MEL - South Eastern 88 (+6.1%) 6.00 (-25 bps) 7.13 (-38 bps) 1,500 (+15.4%) 500 (+42.9%) BRI - Southside 118 (n/c) 6.38 (-25 bps) 7.25 (-150 bps) 1,725 (n/c) 313 (+5.0%) BRI - Northside 125 (+4.2%) 6.63 (n/c) 7.38 (-113 bps) 1,925 (+10.0%) 363 (+7.4%) BRI - Trade Coast 133 (n/c) 6.18 (-45 bps) 7.00 (-150 bps) 1,925 (n/c) 525 (+10.5%) BRI - M1 / Logan Cor. 110 (-2.2%) 6.38 (-25 bps) 7.25 (-163 bps) 1,675 (-1.5%) 290 (+10.5%) BRI - West 110 (+4.8%) 6.50 (-38 bps) 7.50 (-163 bps) 1,525 (n/c) 268 (+32.1%) PER - Core 90 (+5.9%) 6.38 (-38 bps) 8.25 (-13 bps) 1,500 (n/c) 425 (n/c) PER - East 80 (n/c) 6.88 (-50 bps) 8.63 (-25 bps) 1,400 (n/c) 388 (n/c) PER - North 85 (n/c) 7.00 (-50 bps) 8.25 (-25 bps) 1,300 (n/c) 388 (n/c) PER - South 78 (n/c) 7.75 (-25 bps) 9.13 (n/c) 1,125 (n/c) 275 (n/c) ADL - Inner West 113 (+2.3%) 7.00 (-88 bps) 8.13 (-50 bps) 1,375 (n/c) 350 (+7.7%) ADL - North 88 (+20.7%) 8.00 (-63 bps) 9.13 (-50 bps) 1,000 (n/c) 75 (-11.8%) ADL - North West* 90 (+9.1%) 7.13 (-50 bps) 8.50 (-88 bps) 1,150 (n/c) 188 (-6.3%) ADL South 75 (n/c) 8.13 (-88 bps) 9.25 (-175 bps) 850 (n/c) 85 (-5.6%) ADL - South West* 105 (+2.4%) 7.25 (-63 bps) 8.63 (-50 bps) 1,275 (n/c) 400 (+6.7%) Note: 12 month change shown in brackets, land values reflect serviced & benched sites (3,000-5,000 sq m) * Changes have been made to the suburbs included in these precincts, hence material 12 month growth numbers may appear 12 Month Face Rental & Capital Growth 35% Net Face Rent Growth Capital Value Growth 30% 25% 20% 15% 10% 5% 0% -5% SYD - South Syd SYD - West SYD - Cntrl West SYD - Nth Shore SYD - Nth West SYD - South West SYD - Outer S.W. MEL - City Fringe MEL - West MEL - North MEL - East MEL - South Eastern BRI - Southside BRI - Northside BRI - Trade Coast BRI - M1 / Logan Cor. BRI - West PER - Core PER - East PER - North PER - South ADL - Inner West ADL - North ADL - North West ADL - South ADL - South West Source: Savills Research savills.com.au/research 3

4 National Face Rents, Effective Rents and Incentive Comparison Average Net Face ($/sq m) Net Effective Incentive (Net % RHS) SYD - South Syd SYD - West SYD - Cntrl West SYD - Nth Shore SYD - Nth West SYD - South West SYD - Outer S.W. MEL - City Fringe MEL - West MEL - North MEL - East MEL - South Eastern BRI - Southside BRI - Northside BRI - Trade Coast BRI - M1 / Logan Cor. BRI - West PER - Core PER - East PER - North PER - South ADL - Inner West ADL - North ADL - North West ADL - South ADL - South West Yield and IRR Spread to Bond Rates 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 10-yr Bond Market Yield IRR SYD - South Syd SYD - West SYD - Cntrl West SYD - Nth Shore SYD - Nth West SYD - South West SYD - Outer S.W. MEL - City Fringe MEL - West MEL - North MEL - East MEL - South Eastern BRI - Southside BRI - Northside BRI - Trade Coast BRI - M1 / Logan Cor. BRI - West PER - Core PER - East PER - North PER - South ADL - Inner West ADL - North ADL - North West ADL - South ADL - South West Typical Capital Value Range ($/sq m) 5,000 4,000 3,000 2,000 1,000 0 SYD - South Syd SYD - West SYD - Cntrl West SYD - Nth Shore SYD - Nth West SYD - South West SYD - Outer S.W. MEL - City Fringe MEL - West MEL - North MEL - East MEL - South Eastern BRI - Southside BRI - Northside BRI - Trade Coast BRI - M1 / Logan Cor. BRI - West PER - Core PER - East PER - North PER - South ADL - Inner West ADL - North ADL - North West Source: Savills Research savills.com.au/research 4

5 Q3/2018 Industrial Sector Economic Drivers Company Profits (Industrial Sectors) 12mo growth to Sep-18 Industrial Sector Economic Drivers 22.4% 22.4% Company Profits (Industrial Sectors) 12mo growth to Sep % 14.7% 14.7% 14.7% 9.2% 9.0% 9.2% 9.0% 6.3% 6.3% 9.2% 9.0% 3.0% 6.3% 3.0% 3.0% Real Industrial Development Approvals - $m 7,000 Real Industrial NSW Development VIC QLD Approvals WA $m 7,000 NSW VIC QLD WA 6,000 6,000 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1, State Final Demand Compound Growth % (to Sep-18) 5.0% 1yr 5yr 10yr 15yr 5.0% 1yr 5yr 10yr 15yr State 4.0% Final Demand Compound Growth % (to Sep-18) 4.0% 5.0% 3.0% 1yr 5yr 10yr 15yr 3.0% 4.0% 2.0% 2.0% 3.0% 1.0% 2.0% 1.0% 0.0% 1.0% 0.0% -1.0% -1.0% 0.0% -2.0% -1.0% -2.0% -3.0% -2.0% -3.0% -4.0% -3.0% -4.0% NSW VIC QLD WA SA ACT AUS NSW VIC QLD WA SA ACT AUS -4.0% NSW VIC QLD WA SA ACT Logistics Job Advertisements - 12 Growth to Dec-18 AUS Logistics Job Advertisements 12 month growth to Dec-18 WA 22.1% WA TAS TAS VIC VIC NT NT AUS AUS QLD QLD ACT ACT NSW NSW SA SA 22.1% 19.6% 19.6% 12.8% 12.8% 7.5% 7.5% 7.1% 7.1% 5.3% 5.3% 2.9% 2.9% 0.7% 0.7% -4.1% -4.1% Summary of State Economic Indicators Key State Indicators (%) Key State Indicators (%) Latest Latest NSW NSW VIC VIC QLD QLD QLD WA WA WA SA SA SA ACT ACT ACT AUS AUS AUS SFD / GDP SFD / Growth GDP Growth SFD / GDP Growth Sep-18 Sep-18 Sep (2.7) (2.7) 3.5 (2.7) 4.4 (3.0) 4.4 (3.0) 3.2 (1.7) 3.2 (1.7) (1.6) (1.6) (1.9) (1.9) 3.7 (2.5) 3.7 (2.5) 2.8 (2.6) 2.8 (2.6) 0.3 (1.6) 3.1 (1.9) 3.7 (2.5) 2.8 (2.6) Population Population Growth Growth Population Growth Jun-18 Jun-18 Jun (1.4) (1.4) 1.5 (1.4) 2.2 (2.1) 2.2 (2.1) 1.7 (1.7) 1.7 (1.7) (1.8) (1.8) (0.9) (0.9) 2.2 (1.9) 2.2 (1.9) 1.6 (1.6) 1.6 (1.6) 0.8 (1.8) 0.7 (0.9) 2.2 (1.9) 1.6 (1.6) Employment Employment Growth Growth Employment Growth Dec-18 Dec-18 Dec (1.8) (1.8) 2.9 (1.8) 3.5 (2.4) 3.5 (2.4) 1.4 (1.2) 1.4 (1.2) (1.2) (1.2) (0.7) (0.7) -1.9 (1.2) -1.9 (1.2) 2.3 (1.7) 2.3 (1.7) 0.8 (1.2) 1.2 (0.7) -1.9 (1.2) 2.3 (1.7) Unemployment Unemployment Rate Rate Unemployment Rate Dec-18 Dec-18 Dec (5.3) (5.3) 4.7 (5.3) (5.7) 4.8 (5.7) 6.2 (5.9) 6.2 (5.9) (5.2) (5.2) (6.1) (6.1) 3.7 (3.9) 3.7 (3.9) 5.3 (5.6) 5.3 (5.6) 6.3 (5.2) 5.7 (6.1) 3.7 (3.9) 5.3 (5.6) Inflation Inflation Inflation Sep-18 Sep-18 Dec (2.2) (2.2) 1.7 (2.2) (2.1) 2.0 (2.1) 1.8 (2.1) (2.1) 1.5 (2.1) (1.8) (1.8) (2.0) (2.0) 2.5 (1.9) 2.5 (1.9) 1.9 (2.0) 1.9 (2.0) 1.3 (1.8) 1.6 (2.0) 2.5 (1.9) 1.8 (2.0) Retail Trade Retail Trade Growth Growth Nov-18 Nov (4.4) (4.4) (4.3) (4.3) (3.2) (3.2) (3.1) (3.1) (2.5) (2.5) 4.7 (3.7) 4.7 (3.7) 3.4 (3.8) Retail Turnover Dec (4.2) 5.2 (4.0) 3.8 (3.1) 0.8 (3.1) 1.3 (2.3) 4.8 (3.6) (3.8) (3.6) 10yr average shown in brackets, all growth shown on an annual basis 10yr average shown in brackets, all growth shown on an annual basis Sources: ABS, RBA, DOE, Savills Research Source: Sources: ABS ABS, / DOE RBA, / Savills DOE, Note: Savills Annual Research change shown, 10yr compound average in brackets Note: Economic Note: growth SFD measure numbers excludes are on a net rolling exports; annual retail basis; trade Employment uses 3mma, growth employment is on trend data terms adopts trend figures. Note: SFD measure excludes net exports; retail trade uses 3mma, employment data adopts trend figures. Note: SFD measure excludes net exports; retail trade uses 3mma, employment data adopts trend figures. savills.com.au/research 5 savills.com.au/research 5

6 National Sales Activity Reported Transaction Activity - Sales $10m+ $7bn NSW VIC QLD WA SA $6bn $5bn $4bn $3bn $2bn $1bn $0bn Purchasers Fund Developer Government Foreign Investor Other Vendors Trust Owner Occupier Syndicate Private Investor Top Recent Sales by Value ($m) Stradbroke St, Heathwood, QLD - Oct-18 - $1,884/sq m 180 Loemans Rd, Bulla, VIC - Nov-18 - $9,760/sq m 55 Yarrunga St, Prestons, NSW - Sep-18 - $2,177/sq m 102 Trade St, Lytton, QLD - Nov-18 - $3,799/sq m 120 Miller St, Chester Hill, NSW - Oct-18 - $2,370/sq m 885 Mountain Hwy, Bayswater, VIC - Sep-18 - $166/sq m 19 Miles Rd, Kewdale, WA - Nov-18 - $1,687/sq m 28B Mcpherson St, Banksmeadow, NSW - Nov-18 - $14,543/sq m 1 International Dr, Westmeadows, VIC - Nov $1,624/sq m Glen Waverley Rd, 9, 11 & 11A Aristoc Rd, Glen Waverley, VIC - Oct- 1 Garigal Rd, Belrose, NSW - Nov-18 - $2,667/sq m Lot 102 Wayne Goss Dve, Berrinba, QLD - Sep-18 - $1,617/sq m 3 Burilda Cl, Wetherill Park, NSW - Sep-18 - $1,569/sq m 149 Kerry Rd, Archerfield, QLD - Dec-18 - $2,222/sq m Wellington Rd, Mulgrave, VIC - Sep-18 - $3,789/sq m 1-7 Wayne Goss Dr, Berrinba, QLD - Sep-18 - $1,678/sq m 155 Lakes Rd & 103 Stirling Cres, Hazelmere, WA - Dec-18 - $2,404/sq m 120 Hume Hwy, Greenacre, NSW - Oct-18 - $1,537/sq m 32 Britton St, Smithfield, NSW - Oct-18 - $1,563/sq m & Marshall Ct, Altona, VIC - Sep-18 - $1,367/sq m Top Recent Sales by $/sq m 14,543 9,760 5,528 4,352 4,211 3,799 3,789 3,743 3,182 2,740 2,667 2,404 2,370 2,222 2,177 2,154 2,150 2,117 2,045 1,936 28B Mcpherson St, Banksmeadow, NSW - Nov-18 - $42.58m 180 Loemans Rd, Bulla, VIC - Nov-18 - $77.42m 21 Daphne St, Botany, NSW - Nov-18 - $10.20m 24 Thompson St, Abbotsford, VIC - Nov-18 - $10.00m 35 Wentworth St, Greenacre, NSW - Oct-18 - $13.50m 102 Trade St, Lytton, QLD - Nov-18 - $55.00m Wellington Rd, Mulgrave, VIC - Sep-18 - $30.50m 1-3 Garema Cct, Kingsgrove, NSW - Nov-18 - $10.20m 115 Crockford St, Northgate, QLD - Sep-18 - $10.70m 13 Shale Pl, Eastern Creek, NSW - Dec-18 - $14.00m 1 Garigal Rd, Belrose, NSW - Nov-18 - $32.80m 155 Lakes Rd & 103 Stirling Cres, Hazelmere, WA - Dec-18 - $23.80m 120 Miller St, Chester Hill, NSW - Oct-18 - $54.10m 149 Kerry Rd, Archerfield, QLD - Dec-18 - $30.60m 55 Yarrunga St, Prestons, NSW - Sep-18 - $71.60m Hampstead Rd, Auburn, NSW - Dec-18 - $12.25m 11 Alfred Rd, Chipping Norton, NSW - Dec-18 - $10.75m 3-5 John Morphett Pl, Erskine Park, NSW - Nov-18 - $19.00m Glen Waverley Rd, 9, 11 & 11A Aristoc Rd, Glen Waverley, VIC - Oct Bessemer St, Blacktown, NSW - Dec-18 - $20.02m savills.com.au/research 6

7 National Leasing Activity Reported Leasing Activity - Leases 1,000sq m+ 4,000,000 NSW VIC QLD WA SA 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 Wholesale % Transport & Logistics % Construction, Mining & Agri - 7.6% Property & Business Services - 3.7% Undisclosed - 2.7% Government - 1.5% Health / Community Services / Education - 1.0% Leasing Composition by Type - Leases 1,000sq m+ Leasing Composition by Quality - Leases 1,000sq m+ Direct - Existing - 1,446,924sqm % Precommit - 519,544sqm % Direct - New - 424,619sqm % Renewal - 168,099sqm - 6.0% Sublease - 22,074sqm - 0.8% Leaseback - 5,051sqm - 0.2% - 1,450,582sqm % - 382,189sqm % Top Recent Leases 1,000sq m+ 22,000 21,674 Precom Direct & Other 15,026 12,680 12,515 12,395 8,932 7,591 5,900 5,449 5,300 5,200 4,500 3,940 3,800 3,600 3,543 3,400 3,276 2,890 Catch Group, VIC ACFS Port Logistics, NSW ACR Supply Partners, NSW BR Williams, NSW estore, NSW B Dynamic, NSW Lendlease Bouygues, NSW Iron Mountain, WA Country Fire Authority, VIC Boral De Martin & Gasparini, NSW USG Boral Building Services, NSW Cleanaway, VIC Branin, VIC Shin Mi (Australia), NSW SWC Management (T/A Paz Stone), QLD Assa Abloy Entrance Systems, VIC Kythrea Food Services, NSW General Glass Supplies, QLD Offsite Automation, WA HSR Southern Cross, NSW savills.com.au/research 7

8 New South Wales New South Wales Latest Available NSW Economic Indicators 10yr Avg SFD ($b) Sep b (3.7) b (2.9) b (4.6) b (2.7) b (3.5) Employment Growth Dec k (1.3) 158.0k (4.4) 22.0k (0.6) 130.1k (3.4) 114.8k (2.9) Unemployment Rate Dec Inflation Dec Retail Trade Growth Dec Job Ads Ind Dec k (14.9) 105.8k (10.3) 120.7k (14.1) 126.1k (4.5) 127.0k (0.7) DA Approvals Ind Dec b (-5.1) 1.47b (27.8) 1.47b (-0.3) 2.40b (63.2) 1.76b (-26.5) Source: ABS / Savills Research Note: Annual growth shown in brackets South Sydney Alexandria, Botany, Banksmeadow, Rosebery South Sydney Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 3,000 4,500 2,000 2,500 Land Values 3,000-5,000 sq m ($/sq m) 1,500 (low) 1,850 (high) Land Values 10,000-50,000 sq m ($/sq m) 1,000 (low) 1,250 (high) Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis (3,000-5,000 sq m); *Equated yield Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 savills.com.au/research 8

9 South West Sydney Chipping Norton, Moorebank, Prestons South West Sydney Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,900 2,250 1,500 1,850 Land Values 3,000-5,000 sq m ($/sq m) 600 (low) 800 (high) Land Values 10,000-50,000 sq m ($/sq m) 500 (low) 700 (high) Land Values 10 ha and above ($/sq m) 475 (low) 575 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Outer South West Sydney Campbelltown, Ingleburn, Minto, Smeaton Grange Outer South West Sydney Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,750 2,000 1,200 1,400 Land Values 3,000-5,000 sq m ($/sq m) 550 (low) 650 (high) Land Values 10,000-50,000 sq m ($/sq m) 500 (low) 650 (high) Land Values 10 ha and above ($/sq m) 475 (low) 550 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Central West Sydney Auburn, Chullora, Granville, Homebush, Rydalmere, Silverwater Central West Sydney Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 2,000 2,500 1,750 2,000 Land Values 3,000-5,000 sq m ($/sq m) 700 (low) 900 (high) Land Values 10,000-50,000 sq m ($/sq m) 650 (low) 800 (high) Land Values 10 ha and above ($/sq m) 600 (low) 800 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 9

10 Western Sydney Arndell Park, Eastern Creek, Erskine Park, Greystanes, Huntingwood, Smithfield, Wetherill Park, Yennora Western Sydney Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,850 2,500 1,200 1,700 Land Values 3,000-5,000 sq m ($/sq m) 650 (low) 800 (high) Land Values 10,000-50,000 sq m ($/sq m) 550 (low) 650 (high) Land Values 10 ha and above ($/sq m) 525 (low) 650 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 North Western Sydney Seven Hills, Kings Park, Blacktown, Marsden Park, Baulkham Hills North Western Sydney Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,500 2,000 1,200 1,450 Land Values 3,000-5,000 sq m ($/sq m) 600 (low) 800 (high) Land Values 10,000-50,000 sq m ($/sq m) 550 (low) 650 (high) Land Values 10 ha and above ($/sq m) 525 (low) 650 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 North Shore Artarmon, Lane Cove, St Leonards North Shore Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 2,250 3,000 1,750 2,250 Land Values 3,000-5,000 sq m ($/sq m) 900 (low) 1,250 (high) Land Values 10,000-50,000 sq m ($/sq m) 750 (low) 900 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 10

11 Top Recent Notable Sales Property Type Price ($m) Date GLA Yield Type $/sq m 60 Wallgrove Rd, Eastern Creek (50.0%) Warehouse Sep , r 2, Hartley Rd, Smeaton Grange Warehouse Aug-18 61, e 1, Yarrunga St, Prestons Warehouse Sep-18 32, r 2, Bourke Rd, Alexandria Warehouse Jul-18 8, i 6, Miller St, Chester Hill Warehouse Oct-18 22, e 2, Horsley Rd, Milperra Warehouse Jun-18 38, r 1, Percival Rd, Smithfield Warehouse Aug-18 24, e 1,859 28B Mcpherson St, Banksmeadow Warehouse Nov-18 2, r 14,543 1 Garigal Rd, Belrose Warehouse Nov-18 12,300 n.a n.a 2,667 3 Burilda Cl, Wetherill Park Warehouse Sep-18 20, r 1,569 1 Johnson Rd, Campbelltown Warehouse Jun-18 16, e 1, Huntingwood Dr, Huntingwood Warehouse Aug-18 17,200 n.a v 1, Williamson Rd, Ingleburn Warehouse Jun-18 11, e 1, Hume Hwy, Greenacre Warehouse Oct-18 15,160 n.a n.a 1, Britton St, Smithfield Warehouse Oct-18 14,088 n.a n.a 1,563 Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = Development; Top Recent Notable Leases Property Tenant Date Area Leased Type Rent Term First Estate, Erskine Park Snack Brands Oct-18 30,291 p Calibre Estate, Eastern Creek ACFS Port Logistics Oct-18 21,674 s Unit 1, Lot 21 Old Wallgrove Rd, Eastern Creek ACR Supply Partners Dec-18 15,026 s First Estate, Erskine Park Specialty Packaging Group Oct-18 14,600 p Moorebank Logistics Park, Moorebank BR Williams Dec-18 12,680 p Hollinsworth Rd, Marsden Park estore Oct-18 12,515 p B Huntingwood Dr, Huntingwood Cahill Transport Oct-18 11,266 e Newton Rd, Wetherill Park IPD Group Sep-18 10,908 e Warehouse C, 46 Carrington Rd, Castle Hill Lendlease Bouygues Nov-18 8,932 e Keylink Industrial Estate - South, Minto Florabelle Sep-18 6,363 s Portside Distribution Centre, Banksmeadow Undisclosed Dec-18 6,267 e First Estate, Erskine Park IMCD Group Oct-18 6,100 p Chullora Logistics Park, Chullora Boral De Martin & Gasparini Nov-18 5,449 p Chullora Logistics Park, Chullora USG Boral Building Services Nov-18 5,300 p Enfield Intermodal, Strathfield South Shin Mi (Australia) Dec-18 3,940 p Leasing Types: e = Existing, s = Speculative, p = Pre-Lease, sub = Sub-Lease, r = Renewal savills.com.au/research 11

12 Victoria Latest Available VIC Economic Indicators 10yr Avg SFD ($b) Sep b (2.0) b (4.9) b (3.9) b (4.5) b (4.4) Employment Growth Dec k (2.5) 74.7k (2.5) 120.6k (4.0) 92.9k (3.0) 114.3k (3.5) Unemployment Rate Dec Inflation Dec Retail Trade Growth Dec Job Ads Ind Dec k (15.4) 75.9k (7.0) 83.9k (10.5) 91.7k (9.4) 103.5k (12.8) DA Approvals Ind Dec b (12.6) 1.38b (11.5) 1.78b (28.9) 1.68b (-5.7) 1.91b (13.4) Source: ABS / Savills Research Note: Annual growth shown in brackets West Altona, Derrimut, Laverton North, Sunshine, Truganina West Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,200 1, Land Values 3,000-5,000 sq m ($/sq m) 230 (low) 360 (high) Land Values 10,000-50,000 sq m ($/sq m) 225 (low) 350 (high) Land Values 10 ha and above ($/sq m) 150 (low) 225 (high) Englobo Land Values ($/sq m) 60 (low) 100 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 12

13 South Eastern Braeside, Carrum Downs, Dandenong, Keysborough, Moorabbin South Eastern Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,300 1, ,200 Land Values 3,000-5,000 sq m ($/sq m) 450 (low) 550 (high) Land Values 10,000-50,000 sq m ($/sq m) 325 (low) 425 (high) Land Values 10 ha and above ($/sq m) 175 (low) 200 (high) Englobo Land Values ($/sq m) 60 (low) 80 (high) City Fringe Port Melbourne City Fringe Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,500 2, ,400 Land Values 3,000-5,000 sq m ($/sq m) 900 (low) 1,250 (high) Land Values 10,000-50,000 sq m ($/sq m) 600 (low) 800 (high) East Mulgrave, Clayton, Rowville, Scoresby, Notting Hill, Knoxfield East Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,400 2, ,300 Land Values 3,000-5,000 sq m ($/sq m) 500 (low) 600 (high) Land Values 10,000-50,000 sq m ($/sq m) 375 (low) 475 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 13

14 North Broadmeadows, Epping, Somerton, Thomastown, Tullamarine North Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,050 1, Land Values 3,000-5,000 sq m ($/sq m) 275 (low) 450 (high) Land Values 10,000-50,000 sq m ($/sq m) 250 (low) 375 (high) Land Values 10 ha and above ($/sq m) 175 (low) 225 (high) Englobo Land Values ($/sq m) 40 (low) 100 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 14

15 Top Recent Notable Sales Property Type Price ($m) Date GLA Yield Type $/sq m 180 Loemans Rd, Bulla Warehouse Nov-18 7, r 9, Thompson St, Abbotsford Factory Nov-18 2,298 n.a n.a 4, Wellington Rd, Mulgrave Warehouse Sep-18 8,050 n.a n.a 3, Glen Waverley Rd, 9, 11 & 11A Aristoc Rd, Glen Waverley Warehouse Oct-18 16, r 2, Ordish Rd & 25 Logis Blvd, Dandenong South Warehouse Jul-18 18, r 1,726 1 International Dr, Westmeadows Warehouse Nov-18 25,866 n.a n.a 1, Wellington Rd, Rowville Warehouse Oct-18 8,140 n.a n.a 1, Banfield Crt, Truganina Warehouse Aug-18 76, i 1, Logis Bvd, Dandenong South Warehouse Jun-18 7,828 n.a n.a 1, Greens Rd, Dandenong South Warehouse Nov-18 6,591 n.a n.a 1, Centre Rd, Springvale Warehouse Jun-18 10, r 1,470 6 Albert St, Preston Warehouse May-18 20, r 1, Woodlands Dr, Braeside Warehouse Jan-18 11, r 1, & 85 Cherry Ln, Laverton North Warehouse Sep-18 17, i 1, Fourth Ave, Sunshine Warehouse Jan-18 52, i 1,401 Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development Top Recent Notable Leases Property Tenant Date Area Leased Type Rent Term 27 Doriemus Dr, Truganina Visy Australia Jul-18 42,770 p n.a Saintly Dr, Truganina Catch Group Nov-18 22,000 s n.a n.a. Part A, Dandenong Border Express Sep-18 19,900 e Taryn Dr, Epping New Age Caravans Jul-18 11,590 e n.a Sky Rd, Tullamarine Royal Express Group Aug-18 10,049 e Hub 3, Dandenong South Tomax Aug-18 8,650 sub 85 3 Part B, Dandenong JTC Import & Export Sep-18 8,000 e Interchange Dr, Laverton North Harvey Norman Jul-18 7,780 e Dalmore Dr, Scoresby Country Fire Authority Nov-18 5,900 s Commercial Dr, Dandenong South Masport Oct-18 5,349 s Freight Ct, Keysborough Cleanaway Dec-18 5,200 p n.a Kirkham Rd West, Keysborough Branin Nov-18 4,500 s Somerton Park Dr, Campbellfield Whitley Marine Group Aug-18 4,366 e 52 5 Building A & B, Campbellfield Undisclosed Oct-18 4,026 s Indian Dr, Keysborough Assa Abloy Entrance Systems Oct-18 3,600 s 100 n.a. Leasing Types: e = Existing, s = Speculative, p = Pre-Lease, sub = Sub-Lease, r = Renewal savills.com.au/research 15

16 Queensland Latest Available QLD Economic Indicators 10yr Avg SFD ($b) Sep b (-2.0) b (-2.7) b (1.1) b (3.3) b (3.2) Employment Growth Dec k (0.0) 61.3k (2.6) -23.3k (-1.0) 114.7k (4.9) 35.2k (1.4) Unemployment Rate Dec Inflation Dec Retail Trade Growth Dec Job Ads Ind Dec k (-3.8) 67.6k (-3.2) 70.1k (3.7) 84.8k (21.0) 89.3k (5.3) DA Approvals Ind Dec b (-26.6) 0.77b (-16.7) 1.11b (44.6) 1.04b (-6.3) 0.99b (-4.4) Source: ABS / Savills Research Note: Annual growth shown in brackets Northside Zillmere, Geebung, Northgate, Banyo, Virginia, Morayfield, Caboolture, Brendale, Strathpine, Petrie, North Lakes, Burpengary, Deception Bay and Narangba Northside Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,500 2,000 1,100 1,400 Land Values 3,000-5,000 sq m ($/sq m) 275 (low) 400 (high) Land Values 10,000-50,000 sq m ($/sq m) 200 (low) 275 (high) Land Values 10 ha and above ($/sq m) 80 (low) 150 (high) TradeCoast Hendra, Eagle Farm, Pinkenba, Morningside, Murarrie, Hemmant, Lytton, Fisherman Island, Tingalpa, Wakerley, Cannon Hill TradeCoast Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,550 2,300 1,000 1,450 Land Values 3,000-5,000 sq m ($/sq m) 400 (low) 650 (high) Land Values 10,000-50,000 sq m ($/sq m) 300 (low) 375 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 16

17 Southside Yeerongpilly, Salisbury, Rocklea, Archerfield, Willawong, Acacia Ridge, Coopers Plains, Eight Mile Plains, Rochedale, Seventeen Mile Rocks, Sumner, Darra, Oxley, Wacol, Carole Park, Richlands, Shailer Park, Slacks Creek, Springwood Southside Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,450 2, ,300 Land Values 3,000-5,000 sq m ($/sq m) 250 (low) 375 (high) Land Values 10,000-50,000 sq m ($/sq m) 200 (low) 275 (high) M1 / Logan Motorway Corridor Crestmead, Marsden, Browns Plains, Meadowbrook, Berrinba, Loganlea, Loganholme, Heathwood, Larapinta, Parkinson, Underwood, Springwood, Yatala, Stapylton, Kingston, Beenleigh, Eagleby, Hillcrest M1 / Logan Motorway Corridor Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,450 1,900 1,000 1,300 Land Values 3,000-5,000 sq m ($/sq m) 250 (low) 330 (high) Land Values 10,000-50,000 sq m ($/sq m) 200 (low) 250 (high) Land Values 10 ha and above ($/sq m) 80 (low) 120 (high) West Goodna, Springfield, Redbank, Bremer, Ebenezer, Willowbank, Mutdapilly, Purga, Swanbank, Ipswich, New Chum, Wulkuraka, Amberley, Bundamba, Raceview, West Ipswich West Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,300 1, ,200 Land Values 3,000-5,000 sq m ($/sq m) 240 (low) 295 (high) Land Values 10,000-50,000 sq m ($/sq m) 150 (low) 225 (high) Land Values 10 ha and above ($/sq m) 80 (low) 150 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 17

18 Top Recent Notable Sales Property Type Price ($m) Date GLA Yield Type $/sq m 44 Stradbroke St, Heathwood Warehouse Oct-18 55, r 1, Trade St, Lytton Cold Storage Nov-18 14, r 3, Riverview Place, Murarrie Warehouse Feb-18 10, e 4, Sherbrooke Rd, Willawong Warehouse May-18 22, e 1, Charles Ulm Pl, Eagle Farm Warehouse Aug-18 21, e 1, Bivouac Pl, Wacol Warehouse May-18 6,057 n.a n.a 5, Lavarack Ave, Eagle Farm Warehouse Aug-18 8, i 4,077 Lot 102 Wayne Goss Dve, Berrinba Warehouse Sep-18 19, e 1, Kerry Rd, Archerfield Warehouse Dec-18 13, r 2, Wayne Goss Dr, Berrinba Warehouse Sep-18 17,880 n.a n.a 1, Inghams Pl, Hemmant Warehouse May-18 20,410 n.a n.a 1, Boundary Rd, Richlands Warehouse Aug-18 13, e 1, Ipswich Rd, Rocklea Warehouse Jun-18 26,958 n.a n.a 571 Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = Development Top Recent Notable Leases Tenant Property Date Area Leased Type Rent Term 66 Cullen Avenue, Eagle Farm Pickles Aug-18 56,000 e 27 5 Future Port Expansion Area, Port of Brisbane Silk Contract Logistics Aug-18 15,250 p Loganlea Distribution Centre, Loganlea M3 Logistics Aug-18 14,088 e 78 4 Yatala Central, Yatala Reward Supply Co Sep-18 13,527 p & 7 Viola Place, Brisbane Airport CEVA Logistics Sep-18 12,971 e n.a 2 Tenancy A, Wayne Goss Drive, Berrinba CTI Logistics Oct-18 10,455 e Radar Street, Lytton Queensland Glass Sep-18 7,600 p Boundary Rd, Richlands Allied Pickfords Aug-18 7,000 e Patrick St, Swanbank Tytec Aug-18 6,000 e South Pine Rd, Brendale SWC Management (T/A Paz Nov-18 3,800 e Kingsford Smith Drive, Eagle Farm Unconfirmed Sep-18 3,708 e Curtin Ave, Pinkenba Semmens Transport Sep-18 3,704 e Bradman St, Acacia Ridge General Glass Supplies Dec-18 3,400 s Leasing Types: e = Existing, s = Speculative, p = Pre-Lease, sub = Sub-Lease, r = Renewal savills.com.au/research 18

19 Western Australia Latest Available WA Economic Indicators 10yr Avg SFD ($b) Sep b (-1.5) b (-2.0) b b (-1.7) b (0.3) Employment Growth Dec k (1.2) -6.3k (-0.5) -20.7k (-1.6) 37.9k (2.9) 10.8k (0.8) Unemployment Rate Dec Inflation Dec Retail Trade Growth Dec Job Ads Ind Dec k (4.5) 42.5k (-18.3) 36.2k (-14.8) 45.3k (25.1) 55.3k (22.1) DA Approvals Ind Dec b (-6.1) 0.67b (-26.3) 0.53b (-21.8) 0.55b (4.5) 0.50b (-8.8) Source: ABS / Savills Research Note: Annual growth shown in brackets Perth Core Belmont, Canning Vale, Kewdale, Welshpool, Jandakot Airport, Perth Airport (excludes Osborne Park) Perth Core Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 1,000 2, ,300 Land Values 3,000-5,000 sq m ($/sq m) 350 (low) 500 (high) Land Values 10,000-50,000 sq m ($/sq m) 275 (low) 425 (high) Land Values 10 ha and above ($/sq m) 200 (low) 325 (high) Perth North Balcatta, Joondalup, Malaga, Wangara, Landsdale Perth North Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 900 1, ,100 Land Values 3,000-5,000 sq m ($/sq m) 275 (low) 500 (high) Land Values 10,000-50,000 sq m ($/sq m) 200 (low) 400 (high) Land Values 10 ha and above ($/sq m) 100 (low) 325 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 19

20 Perth East Kenwick, Forrestfield, Maddington, Hazelmere, Bayswater, Bassendean, South Guildford Perth East Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 800 2, ,300 Land Values 3,000-5,000 sq m ($/sq m) 300 (low) 475 (high) Land Values 10,000-50,000 sq m ($/sq m) 175 (low) 325 (high) Land Values 10 ha and above ($/sq m) 150 (low) 250 (high) Perth South Bibra Lake, Forrestdale, Henderson, Jandakot, Kwinana, Naval Base, O Connor, Rockingham, Latitude32 Perth South Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 750 1, Land Values 3,000-5,000 sq m ($/sq m) 150 (low) 400 (high) Land Values 10,000-50,000 sq m ($/sq m) 125 (low) 300 (high) Land Values 10 ha and above ($/sq m) 100 (low) 200 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 20

21 Top Recent Notable Sales Property Type Price ($m) Date GLA Yield Type $/sq m 19 Miles Rd, Kewdale Warehouse Nov-18 26, r 1,687 Cnr Rockingham Rd & Russell Rd, Henderson Warehouse Aug-18 62, e Lakes Rd & 103 Stirling Cres, Hazelmere Warehouse Dec-18 9, r 2,404 7 Ashby Cl, Forrestfield Warehouse Jun-18 11, e 1, Chisholm Cres, Kewdale Factory Jun-18 8, e 1, Stirling Hwy, North Fremantle Factory Jan-18 9, e 1, Railway Pde, Bassendean Warehouse Aug-18 2, e 5,168 7 Sobek Pass, Bibra Lake Warehouse Jul-18 13,197 n.a n.a 758 Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development Top Recent Notable Leases Property Tenant Date Area Leased (sq m) Type Rent Term 450 Belmont Ave, Kewdale Winning Appliances Apr-18 14,810 p Great Eastern Hwy, Redcliffe Fantastic Furniture Sep-18 14,774 r n.a n.a. 841 Abernethy Rd, Forrestfield CTI Logistics Jun-18 14,379 s 90 5 Kewdale Distribution Centre, Kewdale Myer Oct-18 12,580 r n.a 5 5 Harrison Rd, Forrestfield James Hardie May-18 8,730 e Chisholm Cres, Kewdale Austin Engineering Apr-18 8,425 r Kewdale Distribution Centre, Kewdale Iron Mountain Nov-18 7,591 e Miles Rd, Kewdale Mainfreight Aug-18 7,284 e n.a n.a. Warehouse A, Canning Vale CBH Group Jul-18 6,891 e Pilbara St, Welshpool ARB Oct-18 6,500 p Abernethy Rd, Kewdale Australia Post May-18 6,278 e n.a n.a. Warehouse B, Canning Vale Kangaroo Transport Industries Jun-18 6,216 e Modal Cres, Canning Vale Leeuwin Transport May-18 5,052 e n.a Pilbara St, Welshpool Trelleborg Engineered Products May-18 4,550 e Ballantyne Rd, Kewdale Offsite Automation Dec-18 3,276 e 75 1 Leasing Types: e = Existing, s = Speculative, p = Pre-Lease, sub = Sub-Lease, r = Renewal savills.com.au/research 21

22 South Australia Latest Available SA Economic Indicators 10yr Avg SFD ($b) Sep b (0.4) b (2.1) b (1.9) b (4.2) b (3.1) Employment Growth Dec k (0.2) 7.3k (0.9) 11.7k (1.4) 15.1k (1.8) 10.2k (1.2) Unemployment Rate Dec Inflation Dec Retail Trade Growth Dec Job Ads Ind Dec k (2.4) 15.3k (-15.4) 17.7k (15.7) 21.7k (22.2) 20.8k (-4.1) DA Approvals Ind Dec b (-17.0) 0.21b (-2.7) 0.30b (41.6) 0.33b (7.7) 0.43b (31.1) Source: ABS / Savills Research Note: Annual growth shown in brackets Inner West Beverley, Thebarton, Adelaide Airport, Hindmarsh Inner West Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 950 1, Land Values 3,000-5,000 sq m ($/sq m) 250 (low) 450 (high) North West Regency Park, Wingfield, Port Adelaide, Gillman, Dry Creek, Outer Harbor North West Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 900 1, Land Values 3,000-5,000 sq m ($/sq m) 125 (low) 250 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 22

23 North Edinburgh, Burton, Salisbury, Direk North Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 800 1, Land Values 3,000-5,000 sq m ($/sq m) 50 (low) 100 (high) South West Edwardstown, St Marys South West Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 950 1, Land Values 3,000-5,000 sq m ($/sq m) 300 (low) 500 (high) South Lonsdale, Seaford South Rental Net Face ($/sq m) Incentives (%) Yield - Market (%) * IRR (%) Outgoings - Total ($/sq m) Capital Values ($/sq m) 700 1, Land Values 3,000-5,000 sq m ($/sq m) 50 (low) 120 (high) Average grade movement over the year to Dec-18 Average grade movement over the year to Dec-18 Source: Savills Research; Assumption: Lands values are quoted on a serviced and benched gross land area basis; *Equated yield savills.com.au/research 23

24 Top Recent Notable Sales Property Type Price ($m) Date GLA Yield Type $/sq m Port Wakefield Rd, Burton Warehouse Jun-18 21, i 2, Mersey Road North, Osborne Warehouse Apr-18 11, r 1, Bedford St, Gillman Warehouse Dec-18 8, i 1, Cavan Rd, Gepps Cross Warehouse Sep-18 6, i 1,567 Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development, v = Vacant; * part of portfolio sale Top Recent Notable Leases Property Tenant Date Area Leased Type Rent Term Watervale Dr, Green Fields Town & Country Freighters Jan-18 8,832 r Butler Blvd, Adelaide Airport Toll Transport Mar-18 8,461 r n.a Cavan Rd, Gepps Cross State Government (State Records) Mar-18 6,445 r Rundle Rdlisbury South Fletchers Insulation Feb-18 4,657 e n.a n.a Churchill Rd North, Dry Creek Carpet Call Jul-18 4,319 e 65 n.a Kapara Rd, Gillman WA Freight Group Jan-18 4,111 e n.a n.a George St, Green Fields Apex Steel Supplies Aug-18 4,096 e 70 n.a. 9 Capelli Rd, Wingfield Agribits (G&C Enterprises) Jan-18 3,728 e 74 n.a. 126 Days Rd, Ferryden Park SA Power Networks (Enerven Energy Infrastructure Pty Ltd) Jan-18 3,125 e Playford Creslisbury North AMC Mar-18 2,304 e Chapel St, Thebarton Snowy's Outdoors Mar-18 2,034 e n.a Hanson Rd, Wingfield Cooper Utilities Feb-18 1,144 e Walsh Ave, St Marys Australian Ground Mount Solutions Mar e 86 2 Leasing Types: e = Existing, s = Speculative, p = Pre-Lease, sub = Sub-Lease, r = Renewal savills.com.au/research 24

25 savills.com.au/research 25

26 Savills Australian Capital Territory Valuations Industrial Sales Phil Harding Nic Purdue +61 (0) (0) pharding@savills.com.au npurdue@savills.com.au Industrial Leasing Pip Doogan +61 (0) pdoogan@savills.com.au Project Management Gavin Boswarva +61 (0) gboswarva@savills.com.au Savills New South Wales Valuations Industrial & Business Services Al Carpenter Michael Fenton +61 (0) (0) acarpenter@savills.com.au mfenton@savills.com.au Asset Management Howard Chapman +61 (0) hchapman@savills.com.au Industrial & Business Services Ray Trimboli +61 (0) rtrimboli@savills.com.au Industrial & Business Services Darren Curry +61 (0) dcurry@savills.com.au Project Management Gavin Boswarva +61 (0) gboswarva@savills.com.au Savills Queensland Valuations Leigh Atkinson +61 (0) latkinson@savills.com.au Industrial & Business Services Michael Fenton +61 (0) mfenton@savills.com.au Project Management Ken Ng +61 (0) kng@savills.com.au Asset Management Howard Chapman +61 (0) hchapman@savills.com.au Sunshine Coast Scott Gardiner +61 (0) sgardiner@savills.com.au Industrial Sales & Leasing Callum Stenson +61 (0) cstenson@savills.com.au Gold Coast Kevin Carmody +61 (0) kcarmody@savillsgc.com.au Savills South Australia Valuations Alastair Johnston +61 (0) acjohnston@savills.com.au Industrial & Business Services Michael Fenton +61 (0) mfenton@savills.com.au Industrial Leasing Geoff Shuttleworth +61 (0) gshuttleworth@savills.com.au Asset Management Jeffrey Klaebe +61 (0) jklaebe@savills.com.au Project Management Steve Christodoulou +61 (0) schristodoulou@savills.com.au Industrial Sales Steve Bobridge +61 (0) sbobridge@savills.com.au Savills Victoria Valuations Ross Smillie +61 (0) rsmillie@savills.com.au Industrial & Business Services Michael Fenton +61 (0) mfenton@savills.com.au Industrial South East Lynton Williams +61 (0) lwilliams@savills.com.au Industrial North & West Greg Jensz +61 (0) gjensz@savills.com.au Asset Management Sarah Hendry +61 (0) shendry@savills.com.au Industrial Sales Steve Bobridge +61 (0) sbobridge@savills.com.au Industrial - South East Kosta Filinis +61 (0) kfilinis@savills.com.au Project Management David Hayden +61 (0) dhayden@savills.com.au Savills Western Australia Valuations Industrial & Business Services Mark Foster-Key Michael Fenton +61 (0) (0) mfosterkey@savills.com.au mfenton@savills.com.au Asset Management Jason Ridge +61 (0) jridge@savills.com.au Industrial Sales & Leasing Matthew Hopkins 61 (0) mhopkins@savills.com.au Industrial Sales & Leasing Ben Widdowson 61 (0) bwiddowson@savills.com.au Project Management Graham Nash +61 (0) gnash@savills.com.au savills.com.au/research 26