Australian Logistics & Industrial Capital Markets Outlook 2025

LOGISTICS & INDUSTRIAL OUTLOOK 2025

MEGA TRENDS FACTORS SHAPING THE NEXT DECADE OF L&I

DEMOGRAPHICS Demographic trends are evolving with the global population expected to peak later this century, driven by declining fertility rates and an ageing population. Further, by 2050, 68% of the world’s population is expected to reside in cities, up from 56% today, representing an additional 2.5 billion people. This will present both opportunities and challenges for the L&I sector, albeit at its core, it will underpin continued demand for central warehouse space as businesses look to position products close to population densities.

AI & TECHNOLOGY Technological innovation and digitalisation will arguably be the biggest disruptor for the L&I sector businesses to adapt in order to remain relevant. AI alone is expected to contribute $15.7 trillion to the global economy by 2030. Improvements in virtual and augmented reality, data driven insights and predictive analysis represent key areas while advancements in 3D printing in construction represents the next frontier for the sector, while also contributing to sustainability efforts. over the next decade, making it crucial for

OBSOLESCENCE Obsolescence will increasingly become a concern for landlords within the sector over the next decade, particularly in infill markets, driven by an occupier focus on efficiencies. In Australia alone, we estimate $85 billion of warehouse stock is either currently obsolete or will become so over the next decade. Technology advancements and evolving logistics requirements will further pronounce this issue. While this represents a challenge for landlords, it also provides the opportunity for enhanced returns and reduced downtimes as stock is either redeveloped or replaced.

OBSOLENCE

AI & TECHNOLOGY

DEMOGRAPHICS