The rise of e-commerce in Australia is adding pressure to an infrastructure pipeline in Queensland already overflowing with pre-Brisbane 2032 projects.
A new report from commercial real estate company CBRE predicted an additional 1.7 to 1.8 million square metres of dedicated e-commerce logistics space would be required over the next five years to support a growing shift in consumer behaviour.
It stated while Australia’s e-commerce market lagged behind other developed economies in penetration rates, it forecast a growth in e-commerce penetration to 17 percent by 2029, indicating a 30 percent increase in online sales value.
CBRE Head of Industrial & Logistics, Data Centre Research Australia Sass Jalili told industry publication MHD Supply Chain News the rising demand for space was set against a backdrop of constrained supply, which is competing for resources with an increasing range of construction and infrastructure projects across the country.
Ms Jalili said the projected pipeline of new logistics developments between 2025 and 2027 would fall short of the space needed to serve not only e-commerce, but also the food and beverage sector and broader population growth.
“E-commerce operators typically require three times more warehouse space than traditional retailers,” she said.
“For every $1 billion in online sales, an extra 70,000 square metres of logistics space is needed.
“That equates to a further 1.7 to 1.8 million square metres by 2030 – a figure that exceeds what’s currently in the pipeline.”
Ms Jalili said the continued growth of online shopping was a result of a broader base of tech-savvy consumers, enhanced digital payments, and more efficient delivery networks.
She said Australia’s total retail market reached $440 billion in 2024, with retail occupiers accounting for roughly 20 percent of all logistics leasing activity that year.
Download: Australias E-commerce and its Impacts on Logistics Real Estate
