Australian Logistics & Industrial Capital Markets Outlook 2025

LOGISTICS & INDUSTRIAL OUTLOOK 2025

THEME 4: PRICING PREMIUMS FOR PORTFOLIOS EXPECTED TO RE-EMERGE High barriers to scale exist in the Australian L&I market where there have been just 12 transactions above $500 million on record. In our experience, there has historically been a 50-85 basis point portfolio premium for transactions in excess of $300 million as it provides buyers with instant scale across a diverse geography and tenant base while supporting efficiencies through streamlined operations. Market volatility over the past two years has meant portfolio premiums have not been evident. However, given greater certainty around pricing, we expect this premium will re-emerge in 2025 as larger players become more active. Several significant offshore investors are looking to enter or expand their Portfolio vs Single Asset Market Yields 9.0% Portfolio vs Single Asset Market Yields

ME 4: PRICING PREMIUMS FOR TFOLIOS EXPECTED TO RE-EMERGE

presence in the Australian market in 2025 and have flagged their intention to build scale quickly. This will allow these investors to immediately become a major player within the Australian logistics market. The challenge will remain around accessing assets with capital needing to be creative to build scale in 2025. This may include strategic partnerships and joint ventures, sale and leaseback opportunities across multiple sites and proactive off market canvassing. cale exist in the Australian L&I market where there have been just 12 transactions on in history. In our experience, there has historically been a 50-85 basis point m for transactions in excess of $300 million as it provides buyers with instant scale geography and tenant base while supporting operational e‹ciencies through ations. over the past two years has meant portfolio premiums have not been evident as me more risk-adverse. However, given greater certainty around pricing, we expect this emerge in 2025 as scale becomes highly sought after, yet will be more pronounced in tions above $500 million going forward. t oŽshore investors are looking to enter or expand their presence in the Australian nd have flagged their intention to build scale quickly. This will allow these investors to ome a major player within the Australian logistics market. l remain around accessing assets with capital needing to be creative to build scale in nclude strategic partnerships and joint ventures, sale and leaseback opportunities tes and proactive oŽ market canvassing. efield

Single assets

8.0%

7.0%

6.0%

5.0%

4.0%

Portfolios

3.0%

2.0%

2019

2020

2021

2022

2023

2024

Source: Cushman & Wakefield Research Includes recapitalisations

AUSTRALIA L&I OUTLOOK 2025 28

Source: Cushman & Wakefield Research. Includes recapitalisations