Australian Logistics & Industrial Capital Markets Outlook 2025

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04 CORE PLUS AND VALUE ADD

05 A NEW CYCLE HAS BEGUN AS THE SECTOR ENTERS A YIELD COMPRESSION CYCLE In line with the view

06 THE SECTOR FACES FEWER HEADWINDS FOR DEPLOYMENT IN 2025 Unlike the 2024 Outlook survey, this year’s survey highlighted fewer immediate barriers to entry within the sector. 37% of investors flagged no immediate barriers to entry (compared to 22% in the 2024 Outlook survey), while 25% noted the mismatch in buyer and vendor pricing expectations remains a challenge (down from 40% in the 2024 Outlook survey).

STRATEGIES REMAIN ON THE MENU, YET CORE IS BACK Given prospects for further rental growth in 2025, investors are planning to remain active for core plus product, with 53% stating they are the 2024 survey, with a more pronounced shift to investor appetite for core. 58% of investors flagged they are very interested in core strategies, up from 50% in the 2024 survey. very interested. Interestingly, this compares to 63% in

that debt costs will be reduced in 2025, 72% of investors expect yield compression by the end of the year. Offshore investors were more aggressive in their outlook for yields, with over 90% expecting yield compression in 2025, led by capital from Singapore and Japan.