Chapter 3

Industrial & Logistics

Australia Real Estate Market Outlook 2021

5 Minute Read

Demand continues to grow for industrial and logistics assets, fuelled by e-commerce growth.


2020 saw the industrial and logistics sector growth strongly. While uncertainty from COVID-19 impacted much of Australia’s economy, it helped accelerate the e-commerce penetration rate, driving demand for quality, well-located warehouse space. 

Furthermore, a resurgence in local food processing and government stimulus in the housing and infrastructure sector is driving demand in the manufacturing and construction sectors, supporting a recovery in the industrial and logistics economy. 

As e-commerce continues to grow, challenges around reverse logistics and delivery times will place pressure on occupiers to meet growing demand in a cost-effective way.

The industrial and logistics sector is expected to remain elevated in 2021 with many investors seeking to reweight their portfolios to capitalise on this demand while landlords are anticipating solid rent growth from an expanding occupier base.