NATIONAL OVERVIEW
THE INDUSTRIAL LAND SHIFT | 9
SYDNEY MELBOURNE BRISBANE PERTH ADELAIDE CONTACT INFORMATION
Capital Appetite For Industrial Land Remains Strong Despite Development Headwinds Despite development feasibility challenges, demand for industrial land has remained strong in recent years. Approximately $9 billion of industrial land transactions above $10 million have been recorded nationally since the beginning of 2024. While data centres have been key contributors to this, several major institutional developers have diminished their industrial land banks, which has prompted several to be actively pursuing land. This has included established groups, such as Goodman, Dexus and ESR, alongside emerging groups such as LogiSPACE. Investors are increasingly paying a premium for development-ready land that can be activated with minimal planning or delivery risk. Similar to the data centre sector, industrial land values are increasingly being driven by deliverability rather than location alone. Sites capable of supporting development within two years are attracting significant competition, creating a two-tier market and the widest pricing differential on record between near-term development opportunities and longer-dated pipeline sites.
What Next? While demand for greenfield land is expected to remain strong as developers seek scalable development opportunities, interest in infill brownfield sites is expected to increase, particularly for assets offering holding income that allows investors to navigate
current development challenges while positioning for redevelopment as market fundamentals improve.
Australian Industrial Land Transactions (>$10 million)
Australian Industrial Land Values by Submarket, 2026 ($/sqm)
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0
$1,000 $1,500 $2,000 $2,500 $3,000 $3,500
$0 $500
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