The Australian industrial and logistics market has set new benchmarks in 2021 as leasing and investment demand reach new heights.
Leasing demand is forecast to well exceed four million sqm for the 2021 calendar year, up from the previous record of 3.3 million sqm in 2020, while investment volumes have already surpassed $12 billion, which is well above the previous high of $7.0 billion set back in 2016.
As we head closer to 2022, fundamentals within the sector will continue to remain supportive of strong market conditions. With restrictions beginning to ease across New South Wales and Victoria, consumer confidence is expected to rise which will support warehouse demand as consumers increase their spending on goods and services.
On the contrary, any downside risk to the sector’s performance in 2022 will stem from low levels of population growth and the weaker than expected economic recovery given recent state-wide lockdown measures in Australia’s two largest states.