Warehouse hunt heats up across Australia
Aussie warehouses and logistics centres have been hot property for years, but new data suggests a fresh surge in investor demand for industrial real estate.
New figures show buyer enquiries for warehouses, factories and industrial real estate listed on realcommercial.com.au rose 7% nationally in the September quarter compared to the previous quarter, and soared 19% year-on-year.
Industrial property views were 2% higher in the third quarter, compared to the previous quarter, and were 17% higher year-on-year.
Enquiries and property views don’t reflect a change in transaction activity, but they can signal changing sentiment.
Industrial property deal activity totalled about $7 billion during the first nine months of 2025, reflecting the long-run average, according to CBRE research.
Industrial property deal activity totalled about $7 billion during the first nine months of 2025. Picture: Getty
Among the big industrial deals in the third quarter was PSP Investments’ $800 investment in the Aliro Group’s open-ended industrial fund, and Centuria’s $216 million purchase of an Adelaide distribution centre from Quintessential Equity.
Michael O’Neill, regional director of Pacific industrial and logistics at CBRE, said investor demand for industrial property had been high for several years.
“The fundamentals of industrial property in Australia are very good in terms of vacancy, geopolitical risk, population growth and infrastructure,” he said.
“All of these factors have a positive effect on values, and it’s perceived as a relatively safe sector to be in.”
It comes as Australia’s industrial vacancy rate came in at just 2.8% during the first half of 2025 despite plenty of new space hitting the market.
About 2.4 million square metres of new warehouse space is set to be built in Australia in 2025. Picture: Getty
About 2.4 million square metres of new warehouse space was expected to be delivered nationally in 2025, about 27% higher than the long-run average, according to CBRE.
Leasing activity slowed in the September quarter, marking the lowest level of quarterly gross take-up of industrial space in 12 months.
But the commercial real estate agency predicts take-up volumes for the 2025 calendar year are on track to supersede 2024, with several lease deals under negotiation expected to close by year’s end.
Data from realcommercial.com.au shows leasing enquiries for industrial real estate in Q3 were flat quarter-on-quarter, and up 1% year-on-year.
Industrial property views on leasing listings were also flat QoQ, however property views were up 9% YoY.
CBRE’s Michael O’Neill says Australia’s industrial property fundamentals are very good. Picture: Supplied
Mr O’Neill said industrial occupier demand and leasing take-up was expected to increase incrementally across the eastern seaboard, leading to higher investor demand.
“As some of the buildings that have been vacant for three to six months begin to lease, investor demand will continue to improve,” Mr O’Neill said.
Looking ahead, Morgan Ruig, director and head of brokerage of logistics and industrial, Queensland at Cushman & Wakefield said the outlook for industrial property was positive.
“The logistics and industrial sector is expected to experience continued rental growth through 2025, supported by tight vacancy and resilient demand,” he said.
“Foreign capital is also expected to remain an important contributor to investment volumes, particularly across institutional-grade assets.”
Industrial real estate has become an investor favourite because of high occupancy levels and rental growth, underpinned by the rise in online shopping, global trade flows, and the need for modern logistics facilities.
