Logistics & Industrial Capital Markets 2024 Outlook Report

What were the key observations in 2023?

Transaction volumes fall, although L&I proved to be more resilient 2023 represented a period of dislocation for the global commercial real estate sector given the divergent bid-ask spread, and investment volumes were severely impacted by rising debt costs and challenging economic conditions. However, for the Australian L&I sector, the market demonstrated its resilience, and overall investment volumes remained largely on par with the annual average recorded since

the GFC, albeit it fell from the record levels recorded in 2021 and 2022. For the year, approximately $5.1 billion in assets traded (for deals above $10 million), largely on par with pre-COVID averages as offshore capital, largely via local managers, continued to subscribe to the outlook for further growth in the sector. Compared to 2022, L&I volumes fell by 32%, and is in contrast more material falls in the office and retail sectors.

Figure 9. Australian Commercial Real Estate Transaction Volumes YoY (>$10 million)

L&I

Retail

O ce

0%

-10%

-20%

-30%

-40%

-50%

-60%

-70%

Source: RCA, Cushman & Wakefield

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