Australian Logistics & Industrial Capital Markets Outlook 2025

CUSHMAN & WAKEFIELD | 59

N N

National Prime L&I Yield Outlook National Prime L&I Yield Outlook

ok for rates – eployed, where s. This ok for rates – eployed, where s. This wo in 2026. ecast to settle d to the current he 20-year tor given the assets for the 025 before a elds will not be cycle first, rne is forecast to he rate of w, yield wo in 2026. ecast to settle d to the current he 20-year tor given the assets for the 025 before a elds will not be cycle first, rne is forecast to he rate of w, yield previous cycle driven by

-1.0% -0.9% -0.8% -0.7% -0.6% -0.5% -0.4% -0.3% -0.2% -0.1% 0.0% -1.0% -0.9% -0.8% -0.7% -0.6% -0.5% -0.4% -0.3% -0.2% -0.1% 0.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

National Prime L&I Yield Outlook

2012

2016

2018

2014

2010

2022

2026

2028

2024

2020

2030

2006

2008

2004

National Weighted Prime L&I Yield

Real Risk Free Rate

2012

2016

2018

2014

2010

2022

2026

2028

2024

2020

2030

2006

2008

2004

Prime L&I Yield Compression Outlook by City, 2025-2030

National Weighted Prime L&I Yield

Real Risk Free Rate

Sydney

Melbourne

Brisbane

Perth

Adelaide

Prime L&I Yield Compression Outlook by City, 2025-2030 Prime L&I Yield Compression Outlook by City, 2025-2030

Sydney

Melbourne

Brisbane

Perth

Adelaide

previous cycle driven by

al weighted 26 al weighted 26

Source: Oxford Economics, Cushman & Wakefield Research

AUSTRALIA L&I OUTLOOK 2025 30

Source: Oxford Economics, Cushman & Wakefield Research Source: Oxford Economics, Cushman & Wakefield Research

AUSTRALIA L&I OUTLOOK 2025 30

in the short term as select investors look further afield. Victoria is the largest logistics market in the country and also one of the strongest state economies, which provides the backdrop to strong real estate fundamentals and capital growth. Notwithstanding, our forecasts indicate that yields will stabilise at higher levels than the previous cycle due to interest rates remaining more elevated than they were during the pandemic era, driven by continued economic growth.