Australian Logistics & Industrial Capital Markets Outlook 2025

LOGISTICS & INDUSTRIAL OUTLOOK 2025

2024 KEY LEARNINGS 2024 KEY LEARNINGS

Investment volumes reach $7.2 billion

Melbourne was the most active city

Investment volumes in 2024 increased by over 40% year-on-year. Excluding the record level of activity recorded in 2021, 2024 volumes were 30% above the 10 year average. ! Assets remain tightly held as obtaining scale remains challenging : Despite the pick-up in investment activity, total volumes amounted to just 2.0% of the sector’s investable universe. Portfolio transactions amounted to just under $2.2 billion for the year. ! Buyer depth and participation gathers momentum : Momentum from capital gathered pace throughout the year, stemming from greater pricing conviction. Buyer participation was strongest for core plus opportunities where positive rental reversions can be realised in the short term, yet there were clear signs of support for core strategies. ! Recapitalisaitons remain a theme: With a reluctance to trade assets outright, partial interests continued to be brought to market. With the bid-ask spread largely on par, more success was achieved in these campaigns compared to 2023, with just over $1.3 billion of recapitalisations trading in 2024, headlined by the Peregrine Portfolio. ! Melbourne was the most active city: Despite challenges posed by the doubling of the Absentee Owner Surcharge, Melbourne was the most active city for investment in 2024, accounting for 44% of total volumes nationally ($3.1 billion). However, 71% of Melbourne asset sales were to domestic buyers (by capital source), compared to 43% for Sydney and 25% in Brisbane. Further, two transactions accounted for over $1.2 billion of Melbourne’s investment activity. ! Domestic investment led by superannuation funds: Australian superannuation funds acquired just over $1.5 billion in 2024, representing 40% of domestic acquisitions. Domestic-based private investors accounted for 25% of domestic acquisitions, with a trend being these investors participating in price brackets historically dominated by institutional groups. ! US and Japan were the dominant sources of o†shore capital: Capital out of the US accounted for 22% of trades by value in 2024 and includes acquisitions from TPG Angelo Gordon, Blackstone and Goldman Sachs. Similarly, capital from Japan into logistics was the strongest on record, with almost $500 million flowing into the sector, led by Hankyu Hanshin Properties. Assets remain tightly held as obtaining scale remains challenging Despite the pick-up in investment activity, total volumes measured just 2.0% of the sector’s investable universe. Portfolio transactions amounted to just under $2.2 billion for the year. Buyer depth and participation gathers momentum Momentum from capital gathered pace throughout the year, stemming from greater pricing conviction. Buyer participation was strongest for core plus opportunities where positive rental reversions could be realised in the short term, yet there were clear signs of support for core strategies. Recapitalisaitons remain a theme With a reluctance to trade assets outright, partial interests continued to be brought to market. With the bid-ask spread largely on par, more success was achieved in these campaigns compared to 2023, with just over $1.3 billion of recapitalisations trading in 2024, headlined by the Peregrine Portfolio. Cushman & Wakefield Despite challenges posed by the doubling of the Absentee Owner Surcharge, Melbourne was the most active city for investment in 2024, accounting for 43% of total volumes nationally ($3.1 billion). However, 71% of Melbourne asset sales were to domestic buyers (by capital source), compared to 43% for Sydney and 25% in Brisbane. Further, two transactions accounted for over $1.2 billion of Melbourne’s investment activity. Domestic investment led by superannuation funds Australian superannuation funds acquired just over $1.5 billion in 2024, representing 40% of domestic acquisitions. Domestic-based private investors accounted for 25% of domestic acquisitions, with a trend being these investors participating in price brackets historically dominated by institutional groups. US and Japan were the dominant sources of offshore capital Capital out of the US accounted for 24% of trades by value in 2024 and includes acquisitions from TPG Angelo Gordon, Blackstone and Goldman Sachs. Similarly, capital from Japan into logistics was the strongest on record, with almost $500 million flowing into the sector, led by Hankyu Hanshin Properties (excludes land acquisitions). N ! Investment volumes reach $7.0 billion: Investment volumes in 2024 increased by 39% year on-year. Excluding the record level of activity recorded in 2021, 2024 volumes were 27% above the 10-year average. $ $ $

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