Australia’s E-commerce and its Impact on Logistics Real Estate

Australia’s E-commerce penetration rate reaches Pandemic high of 14%

E-commerce has grown rapidly over the past five years, with expansion accelerating since the pandemic. Despite e-commerce penetration moderating from pandemic highs, CBRE expects future growth in Australia to continue. Of the key e-commerce drivers identified by CBRE, Australia possesses a distinct advantage in three: Urban population growth, adoption of digital wallets and an expanding e-commerce ecosystem. 

The growth of e-commerce is driving robust industrial & logistics property demand, although the supply pipeline is unlikely to meet future demand. 

Key highlights from this report include:

• Australia’s e-commerce development is in the ‘growth phase’ and CBRE forecast Australia’s e-commerce penetration rate will continue to increase from 14% (as of May 2025) to 17% by 2029.
• Over the next five years, 1.7 to 1.8 million sq. m. of additional e commerce-dedicated logistics space will be required to support the growth of online sales in Australia. 
• The 2025F-2027F industrial and logistics supply pipeline is insufficient to meet the needs of e-commerce, the food and beverage sector, and population growth.
• With logistics demand expected to continue outpacing supply, net effective rents are forecast to grow nationally by an average of 4.1% per annum over the next four years.