While not immune to recent economic uncertainty, the Australian industrial and logistics sector has so far proven to be resilient, underpinned by the exponential growth of e-commerce as well as the reallocation of capital away from other sectors. Our latest paper provides an update to current market conditions within the sector with highlights including:
• Growth in online retail sales has accelerated with annual growth of 31.9% in the year to June 2020, up from 13.6% in January 2020;
• Occupiers have quickly adapted to changing market conditions and recent demand stems from businesses focusing on future-proofing their supply chain capabilities; and
• The investment market remains strong with over $2.8 billion trading so far in 2020, approximately 60% of which has come from sale and leaseback transactions.