Australian Logistics & Industrial Capital Markets Outlook 2025

LOGISTICS & INDUSTRIAL OUTLOOK 2025

2025 L&I CAPITAL MARKETS SURVEY

To understand client challenges and their outlook for 2025, we undertook an Australian L&I Capital Markets survey in late 2024. The sample size covered over 150 investors across a broad geography base and investor spectrum.

WHAT ARE THE INVESTORS INTENTIONS FOR 2025?

01 SYDNEY REMAINS THE NUMBER ONE CITY FOR INVESTMENT The doubling of the Absentee Owner Surcharge in Victoria has turbocharged Sydney’s status as the preferred city for investment. 71% of investors stated Sydney as their preferred

02 CAPITAL TO BECOME MORE ACTIVE IN 2025 Investors are planning to be much more active in 2025, with 97% stating they plan to deploy capital in the year. This compares to 86% in our 2024 survey.

03 STOCK TO REMAIN TIGHTLY HELD Just 38% of investors are planning to divest an asset in 2025. This environment will mean scale will remain challenging to obtain while it will continue to create an imbalance in demand and availability, particularly in Sydney. The lack of suitable stock to acquire was also the top reason prohibiting investors from deploying capital immediately.

Close to 60% plan to make their first

city for investment. Brisbane now ranks

investment in Q1 2025, with offshore investors planning to be the most active.

above Melbourne, while a large share of offshore

groups have either put future Victorian

investments on hold or are planning to divest select assets in 2025. This will however create opportunities for local domiciled capital.