The recent Oxford Economics Report (as prepared for the Property Council of Australia) estimate that $1.2 trillion worth of goods flowed through industrial assets in FY22. Warehousing, distribution centre’s and manufacturing all play such a vital role in moving goods through our economy in an effective and efficient way.

So it was timely that the The Property Council of Australia hosted the Industrial and Logistics Outlook last week to support the launch of this report with key findings below:

• Industrial assets are critical for supporting Australian business activity
• Household consumption of goods cannot occur without industrial assets
• Australia’s connection to the global economy is supported by industrial assets

Our very own Michelle McNally, together with a panel of industry experts including Charlotte Brabant, Head of Investments Australia at Realterm, Brandon Carter, Director T KKR, Gavin Bishop, Managing Director, Industrial & Logistic at Colliers and moderated by Paige Muggeridge, Principal at Blackstone, shared their thoughts on the play of the industrial and logistics sector for 2024:

• The industrial sector is a preferred asset class both locally and globally, outperforming commercial and retail
• There is an urgent need for government to step up to help navigate the critical shortage of well-located and well-serviced industrial land. This is being supported by the PCA, urging government to create a NSW ministerial task force
• The industrial sector of the future needs consideration – impacts from data, technology, innovation and sustainability will require planning to adapt
• Multi- level warehouses are rising in the inner- rings, however many factors are inhibiting this growth including costs of construction, planning controls, inability to manage traffic congestions effectively and costs of construction
• Occupiers absorbing significant rent increases while focusing on cost efficiencies and passing on costs to consumers

A special thank you to Gavin Bishop of Colliers offering a deep dive into the sector and sharing your predictions for 2024, which continue to look positive.