Logistics & Industrial Capital Markets 2024 Outlook Report

Food Logistics Over the long term, food turnover has proven to be highly resilient, particularly in changing and uncertain times as consumers shift spending patterns towards non-discretionary retail items. Over the past 40 years, expenditure on food retailing has grown by 6.3% per annum, which outpaced the 5.1% recorded for discretionary retail items over the same period.

With macro headwinds increasing, the outperformance of food retail is

expected to persist. This outperformance has driven significant investment flows into the sector in search of food-grade logistics facilities, with cold storage and food-based covenants being a key focus for investors.

Figure 21. Food vs Discretionary retail (Indexed to 100 in 1982)

1200

1000

800

600

400

200

0

2011

1991

2017

1993

1995

1997

1985

1987

1983

2019

2021

2015

2013

1989

1999

2001

2023

2005

2007

2003

2009

Non-Food

Food

Source: ABS

Infrastructure Investment A significant investment in transport

industrial development once infrastructure goes in. Nationally, the transport infrastructure pipeline stands at approximately $330 billion (Deloitte Access Economics), dominated by rail and road infrastructure projects. The East Coast states account for approximately 85% of the national investment.

infrastructure is both underway and planned across the country, which has and will continue to act as a catalyst for warehouse demand. Long term, areas that were once considered secondary would become more sought after, and new precincts would become available for

Figure 22. Australian Transport Infrastructure Pipeline ($Bn)

$0 $20 $40 $60 $80 $100 $120 $140

NSW

VIC

QLD

WA

SA

Other

Airport

Rail

Road

Source: Deloitte Access Economics

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