Australian Logistics & Industrial Capital Markets Outlook 2025

LOGISTICS & INDUSTRIAL OUTLOOK 2025

2025 OUTLOOK

SIX KEY THEMES FOR 2025

01 RBA TO REDUCE RATES FURTHER IN 2025 Against a backdrop of moderating inflation, the RBA is expected to reduce the cash rate further in 2025. While there remains some conjecture around how many cuts will occur in 2025, our base case is for the cash rate to reach 3.60% by year’s end. This scenario will not only support capital markets but also leasing demand as household disposable incomes improve.

02 INVESTMENT VOLUMES TO PICK-UP PACE We anticipate investment volumes for L&I will reach approximately $10.0 billion in 2025, representing an approximate 40% increase on 2024 volumes ($7.2 billion). Even at this level, investment volumes will represent less than 4% of Australia’s total L&I investable universe as assets remain tightly held.

03 CAPITAL SOURCES TO BECOME MORE DIVERSE

While traditional players are expected to remain

active in 2025, new capital sources are

expected to emerge from offshore markets. While this will include traditional dominant markets such as Singapore, Hong Kong and the US, capital inflows are expected to become more pronounced from Japanese and European based capital, many of which have recently undertaken market and sector due diligence.