Industrial locked in as hot property

Charter Hall is among the major players targeting industrial properties.

International logistics and e-commerce companies looking to bolster their local operations are boosting their holdings across Australia and also drawing fresh investors to the industrial sector.

Industrial property has locked in its status as one of the nation’s most sought-after property sectors as it is being pursued by Goodman Group, Charter Hall, Stockland, GPT and Mirvac, as well as international groups Blackstone, Frasers and a series of Singaporean trusts.

Last year there was about $3.2 billion in industrial investment sales recorded and gross take-up for Australia’s industrial floorspace topped the 10-year annual average of 2.1 million square metres.

JLL head of capital markets, industrial and logistics Tony Iuliano says demand for industrial property in Australia is rising, particularly as institutional investors geared up to boost their exposure to the industrial sector.

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“We have identified $21 billion of capital wanting to deploy into Australia’s industrial and logistics assets and therefore project another year of strong demand,” Iuliano says.

“With limited prime assets on the market, we project that the capital seeking industrial property will begin to move towards strategic partnerships as an alternative means to gain exposure into the industrial property sector,” he adds.

Iuliano says there is a scarcity of product available to purchase in the Australian market, particularly for big ticket properties or portfolios.

“Fewer portfolio offerings have occurred over the past 12 months and this resulted in the acquisitions of secondary-grade stock in infill locations, particularly over the first half of 2018,” he says.

This article originally appeared on www.theaustralian.com.au/property.