Occupancy and rental growth of industrial space on Australia's eastern seaboard is slowing. Supply is rising and demand is easing as tenants reassess space needs amid economic uncertainty. Lease incentives should rise, particularly for new developments, which will help tenants manage relocation and fit-out costs as they move to higher-quality properties. Goodman Australia Industrial Partnership's (GAIP) occupancy rates fell to 94.4% as of March 31, 2025, from 95.5% as of June 30, 2024. We expect GAIP's earnings to keep growing thanks to positive rent reversions and well-located high-quality properties. This should help offset declining occupancy rates. Incremental earnings from new developments and acquisitions will further bolster growth. We expect GAIP to prudently manage development risk through strong lease pre-commitments as
