Australia’s industrial property sector has demonstrated remarkable resilience and growth, solidifying its position as a cornerstone of the nation’s commercial real estate landscape.

In 2024, the sector witnessed investment volumes reaching approximately $8.8 billion, marking a substantial 36% increase from the previous year.

This surge highlights the robust demand for industrial assets, driven by factors such as the expansion of e-commerce, supply chain optimisation, and infrastructure development.

The industrial real estate market has experienced significant activity, with notable transactions highlighting its vitality.

For instance, a Melbourne-based investor recently acquired a property leased to Amazon in West Gosford, NSW, for $10.85 million, reflecting the strong interest in assets backed by reputable tenants.

Additionally, prime industrial rents have increased by an average of 5% over the 12 months to January 2025, driven by sustained demand and limited supply.

What’s driving investment appeal?

• Robust Demand and Low Vacancy Rates: The national industrial and logistics vacancy rate increased slightly to 2.5% in the second half of 2024 but remains among the lowest globally. This low vacancy environment indicates a strong demand for industrial spaces, providing landlords with favourable leasing conditions.
• Strategic Infrastructure Developments: Major infrastructure projects, such as the development of data centres and logistics hubs, are enhancing the appeal of industrial properties. For example, Goodman Group has significantly expanded its data centre portfolio, with approximately $6 billion in new developments underway, capitalising on the growing demand driven by technological advancements.
• Attractive Yields and Capital Growth: The industrial sector offers competitive yields compared to other commercial real estate segments. Burgess Rawson’s data shows that recent industrial sales range from $781,000 to $15 million, with a median sale price of $3.2 million. While yields have softened slightly from 5.52% in 2024 to 5.66% in 2025, this shift reflects a recalibration in pricing, presenting new opportunities for investors seeking strong long-term returns.

At Burgess Rawson, we have a proven track record of facilitating successful industrial property transactions. In 2024, we achieved over $1.5 billion in sales, reflecting our deep market knowledge and commitment to delivering exceptional results for our clients.

Investing in Australia’s industrial property market presents a compelling opportunity for those seeking stable and lucrative returns. With favourable market dynamics, strategic infrastructure developments, and the expertise of seasoned professionals like Burgess Rawson, investors are well-positioned to capitalise on this thriving sector.