Industrial investment market to eclipse office by 2026

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By 2026, the value of investable industrial property is expected to be worth $424 billion, making it bigger than both the industrial and retail sectors.

The total value of investment-grade industrial property in Australia is set to surpass the office sector for the first time in 2026 due to a combination of rising logistics real estate values and the completion of new super-sized facilities to cater for the growth of ecommerce.

Over the same time frame, the combined value of investment-grade office buildings is forecast to grow at a more modest pace, rising from $350 billion to about $420 billion, according to CBRE. The surge in valuations has been highlighted in the interim and annual results posted by listed players Goodman Group, Charter Hall, Centuria Industrial REIT and Dexus all of whom have bookedThese same groups, along with likes of Pan-Asian giants ESR, Logos and Frasers, are also investing billions in developing new state-of-the-art automated logistics facilities for clients such as Amazon, Coles and Woolworths.

 

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