Parramatta Blog

Industrial real estate continues to outperform other commercial sectors, both globally and in Australia. In 2024, it attracted $325 billion globally and $10.6 billion locally—more than any other commercial asset class.

Private investors are driving this trend, with 58% of Australia’s industrial investment in 2024 coming from domestic capital, while offshore buyers made up 27%.

Lenders are equally bullish. Industry Lender Sentiment surveys revealed over 70% of lenders placed industrial asset types in their top two asset classes for new investment, citing asset type and location as key refinancing drivers.

The rise of e-commerce, combined with logistics demand and low interest rates, sparked a boom starting in 2020. While growth has cooled since the 2021 peak which saw $32 billion in sales locally, the fundamentals remain strong. Vacancy rates, though up, are still low at 2.5% nationally, and rent growth, though easing, is still well above pre-pandemic levels.

With improving economic conditions and falling interest rates, the sector is poised for renewed strength. Industrial real estate may not see another explosive boom as experienced in 2021—but its stability, demand drivers, and resilience make it a long-term favourite.

If you would like to stay ahead of the trend and capitalise on the recent capital growth of your industrial investment, speak to the experts on 9633 3100 for a free and confidential appraisal report.