Logistics & Industrial Occupier Market Outlook 2024

Manufacturing is also included as part of the structural trends category, given the government stimulus that has or is planned to flow into the sector. Most notably, this included the Future Made initiative as part of the 2024 Federal Budget, and the 2021 announcement of the $1.5 billion Modern Manufacturing Strategy. Our enquiry data shows that manufacturers represent 12% of current enquiries in the market. Lastly, given Australia’s ageing population and demand for pharmaceutical and medical supplies, healthcare is an emerging structural trend that will support warehouse demand. While their share of take-up has only been 2.8% since the beginning of

2023, this is up from less than 1.0% pre-pandemic, and is anticipated to grow at a steady pace. Given the need for some of these goods to be stored at set temperatures, this will provide support for cold storage space. Over the next two years, we anticipate that these structural tailwinds will account for approximately 35%-60% of gross take-up, equating to space requirements in the order of 1.2–2.0 million sqm per annum. A large share of this will stem from transport and logistics operators.

Figure 10. Manufacturing & Health/Pharmaceutical Gross Warehouse Take-Up (sqm)

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000

2013 2014 2015 2016 2017 2018 2019 2020 2021

2022 2023

Manufacturing Health / Pharmaceutical

Source: Cushman & Wakefield

15 | CUSHMAN & WAKEFIELD | LOGISTICS & INDUSTRIAL

OCCUPIER MARKET 2024 OUTLOOK | 16