Investors eye $21b in Australian industrial assets

Approximately $21 billion of investor capital is seeking to invest in Australia’s booming industrial sector, according to JLL. The key drivers of demand are the expanding e-commerce sector, a greater focus on agile supply chain networks, the growing food and grocery sector, and increased investment in technology and automation.

Investment in logistics facilities and other industrial property fell 40 percent to $3.2 billion in 2018 — the first time since 2012 that industrial sale volumes were below the 10-year annual average of $3.7 billion.

JLL predicts the demand for industrial property will continue to rise, particularly as institutional investors gear their strategies toward greater exposure in the sector and build their industrial investment portfolios.