Property Development

Demand for Australian Industrial Assets to Grow: Moody’s

Written by The ReReport
As seen in the Source link, written by theurbandeveloper.com on 2019-02-20 18:10:25

E-commerce, tech innovation, and infrastructure spending is expected to bolster demand and investment in Australia’s industrial real estate sector.

The latest Moody’s report says industrial assets are forecast to outperform the nation’s broader commercial property market across the next several years, largely thanks to accelerated growth in e-commerce activity and technological innovation.

“Creating a wider range of applications for industrial assets, making them more resilient than in previous property cycles,” the report notes.

Current demand for industrial space exceeds both supply and long-term demand averages, according to Moody’s, with major metropolitan areas experiencing a shortage of available industrial zoned land, especially around key transport nodes.

The report identifies industrial markets, the major capital cities of Sydney, Melbourne and Brisbane, along the eastern seaboard as experiencing “elevated levels of demand” in the sector.

Related: Industrial Sector Braces for $21bn Capital Injection in 2019