Logistics & Industrial Capital Markets 2024 Outlook Report

Figure 13. 2023 L&I Buyer & Vendor Profile ($bn)

$1.5

$1.0

$0.5

- $0.0

-$0.5

-$1.0

-$1.5

-$2.0

Unlisted Fund

O shore Direct

AREIT

Super Fund

Private

Corporate

Government

Buyer

Vendor

Source: Cushman & Wakefield

Participation from Australian superannuation funds continues to gain momentum as they shift their investment structure to have more direct exposure to the sector, and as a result, almost $750 million was acquired from such investors in 2023. This was underpinned by UniSuper and Australian Retirement Trust. Single smaller assets dominated investment volumes Following several significant portfolios offered to the market in recent years, 2023 was characterised by smaller single asset trades with the average price point being $35.6 million. By comparison, in 2021 before rate rises impacted the market, the average price point of assets to trade was closer to $50 million. The catalyst for this has been the reluctance of groups to trade their L&I assets, as well as most active capital being focused on infill markets, which tend to be smaller asset sizes with regards to GLA compared to big box warehouses in the outer ring markets. Alternatively, there were seven portfolio transactions totalling almost $1.3 billion, down from the levels recorded in 2021 and a 7% drop from 2022 levels.

CAPITAL MARKETS 2024 OUTLOOK | 14