Australia's industrial real estate sector is showing signs of resurgence, with leasing volumes, capital values and investor confidence all improving in the second quarter of 2025.
Key Highlights:
- Investment recovery gains traction as new capital partnerships and multi-asset deals underpin growing liquidity.
- Q2 investment volumes (+$10M) reached $2.8 billion, a 14% decline from the same time last year, but 20% more Q/Q.
- Institutional investors reclaimed 54% market share, up sharply from 20% a year earlier.
- Pre-leasing accounted for 40% of all deals in Q2, up from the average of 32% since Q2 2024.
- Rental growth was mixed across markets, with modest Prime rent increases in Melbourne and Adelaide.