Australian Logistics & Industrial Capital Markets Outlook 2025

CUSHMAN & WAKEFIELD | 43

Global mega trends drive the demand for real estate through every market cycle. These long-term, structural trends allow investors to be forward-looking in their investment strategies.

AUTOMATION Automation has and will continue to transform the sector, driving efficiency and innovation. Approximately 80% of warehouses globally are expected to adopt some form of automation by 2025, led by declining investment costs and faster returns on investment. Beyond the obvious impacts of reduced labour costs, efficiency improvements through greater space utilisation has the potential to influence demand requirements through a reduction in floorspace needed. Increased height limits will also support this reduction.

SUSTAINABILITY AND ESG

DEGLOBALISATION Deglobalisation has emerged as a significant mega trend over the past five years, underpinned by global disruptions, geopolitical tensions and shifting economic priorities. Global investments in local logistics infrastructure have increased by 25% over the past five years, directed by the onshoring and nearshoring trend.

The need for warehouse occupiers to decarbonise their operations is expected to shift the focus to transportation and their vehicle fleet. A growing share of warehouses today are carbon neutral; however, the big needle mover over the next decade will be the shift to electric vehicles. While this is challenging beyond smaller vehicles, given the need for extensive charging infrastructure and reduced travel ranges, advancements in battery technology are expected to result in this trend accelerating amongst line haul fleets.

Evolving global trade patterns will have long term impacts on the

direction and magnitude of warehouse demand. Technology advancements will also have wide ranging impacts on global trade as reduced costs support more localised production.

AUTOMATION

SUSTAINABILITY AND ESG

DEGLOBALISATION