If you’re looking to grow or diversify your property portfolio, Australian industrial property is becoming increasingly hard to ignore.
Investors' appetite is accelerating in industrial assets across the country, attracted by its ability to deliver stable income, resilient demand and potential rental growth - particularly in key logistics and infill locations.
Rather than being driven by short-term speculation, this momentum is being underpinned by long-term fundamentals that continue to favour well-located industrial property.
Enquiry levels are rising: Online enquiries for warehouse and logistics assets increased by 19% year-on-year, signalling growing confidence from both local and offshore investors.
Transaction activity remains solid: Around $7 billion in industrial property transactions were recorded in the first nine months of 2025, broadly in line with long-term averages.
Vacancy remains tight: National vacancy sits at just 2.8%, supporting rental stability and income certainty for landlords.
While leasing activity slowed slightly during parts of the year, several large occupier requirements are close to completion - positioning full-year leasing activity to exceed 2024 levels.
Why this matters for investors Tight vacancy and disciplined new supply continue to support the investment case. Although approximately 2.4 million sqm of new warehouse space is scheduled for delivery in 2025, much of this is already being absorbed as older, less efficient stock is phased out.
For investors, this means:
- Strong demand for modern, well-located assets
- Continued rental growth potential in core markets such as Sydney, Melbourne and Brisbane
- Ongoing interest from offshore capital, particularly for assets offering scale, automation capability and proximity to major transport infrastructure
As the cycle evolves, investors who focus on quality assets and active management are best placed to benefit. Prime logistics assets with long lease terms and built-in rental increases offer reliable income, while secondary assets can present upside through refurbishment, ESG upgrades and smarter leasing strategies.
