Industrial Insights
IS INDUSTRIAL STILL THE FAVOURED ASSET CLASS? Industrial has been the commercial investors go-to in recent years.
While technology has seen the advancement of many industrial assets, from a dirty shed to a high tech distribution facility, the appeal of industrial has remained high as retail demand continues to see the need for larger logistic and distribution facilities, while small business growth has seen our requirement for small storage, warehousing and manufacturing continue to increase. Investment into industrial peaked in 2021 where close to $32 billion changed hands across the country, representing 32.4 per cent of all commercial sales that year. While the low interest rates and buyers’ desire to diversify their investment portfolios drove investment into commercial assets, the attractiveness of industrial was clear across all price points. For some smaller private investors and owner occupiers there were assets suitable in the sub $10 million range while for listed funds and
Vanessa Rader Head of Commercial Research Ray White
Industrial has been the commercial investors go-to in recent years. High demand for stock coupled with a limited supply pipeline and availability of vacant zoned land has resulted in strong increases in rents. Investment yields have fallen to an all time low for this asset, which was historically considered a secondary commercial investment option behind the likes of office and retail.
8 – October / November 2023
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