Faced with a 9.6% vacancy across the Dexus industrial portfolio at the end of FY16 due to the non-renewal of large expiries, Dexus focused its efforts on improving portfolio performance.

  • Dexus identified three key objectives:
    • Stabilise Melbourne’s portfolio through key renewals and leasing of vacancy
    • Reduce portfolio exposure to third party logistics operators who are contract-based and treat property as a commoditised product 
    • Embed a customer centric culture to improve the Industrial portfolio’s Net Promotor Score (NPS) and increase portfolio retention 
  • In FY17, Dexus completed 117 transactions across 432,000 square metres, including more than 210,000 square metres across the Melbourne portfolio which reflected 49% of the total industrial space leased 
  • This leasing success has resulted in:
    • Increased industrial portfolio occupancy from 90.4% at 30 June 2016 to 96.5% at 30 June 2017
    • Improved WALE from 4.1 years at 30 June 2016 to 5.1 years at 30 June 2017 
    • Increased retention from 32% in FY16 to 74% in FY17 
    • Industrial portfolio like-for-like income growth from -7.1% in FY16 to +3.6% in FY17 
    • Improved industrial NPS from +6 in FY16 to +30 in FY17