Key Insights 

Online retail growth ensures demand, as investors throw their weight behind the sector.

• National investment volumes have risen to a decrease-high, reaching $8.8 billion in 2020 reflecting the increasing popularity of the sector.
  
  
• Increased spending on consumer staples and a rise in the manufacturing and storage of pharma goods is helping to drive tenant demand.
  
  
• Despite an initial dip in activity at the onset of the pandemic, Sydney industrial leasing volumes in 2020 were 7% higher than the five-year average.
• More than 1 million sqm of new industrial stock is tipped to be completed in the Melbourne during 2021 with half of this supply effected to be delivered in the west.
• In Brisbane, more than a third of leasing take-up for 2020 was negotiated in Q4 and this momentum has continued into 2021, underpinned by demand from retail and logistics.
• There has been an uplift in sales activity for vacant industrial land in Adelaide’s northern areas, with increased competition from owner-occupiers driving an increase in land values.
• There has been a spike in demand for large warehouses in Perth in the 3,000 – 10,000 sqm range in government spending and significant infrastructure project commitments.