There has been increased investor interest in Brisbane, which has experienced one of the strongest quarterly industrial and logistics investment volumes on record.
According to Colliers’ Industrial & Logistics Q1 2025 Investment Review Snapshot for Australia, general liquidity remained strong in Q1, driven by investor confidence sparked by the start of the cash rate cutting cycle.
Colliers Managing Director of Industrial & Logistics Australia Gavin Bishop said Brisbane was a stand-out, along with Sydney. Melbourne was still a challenge for offshore investors but opportunity existed for purchasers supported by a domestic capital base.
“The I&L sector has kicked off Q1 2025 with strong momentum, driven by substantial direct investments and capital partnership activity, led by active local managers alongside APAC and US groups,” Mr Bishop said.
“There remains a strong focus on core opportunities along the eastern seaboard, while emerging demand-side trends are becoming evident in Adelaide and Perth contributing to heightened interest in these markets.”
In general, I&L investment volumes started the year on a strong note, with institutional and offshore investors significantly increasing their activity, releasing more than four times the capital in Q1 compared to the same period in 2024.
Rental growth continued to normalise in Q1, but leasing agreements show that rental levels have hit a new base.
There was some yield compression during the quarter which was buoyed by improved market sentiment. The report concluded that the yield softening cycle reached its conclusion in Q1.
