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The industrial property sector has been a star performer in recent years and that trend is expected to continue in 2024 according to valuers Urban Property Australia.

The exceptionally low vacancy rates – standing at less than 2% across the East Coast and below 1% in Sydney – are likely to continue to drive rental growth and upward pressure on prices.

One major force behind this surge is the escalating demand for data centres, fuelled by major tech corporations willing to pay substantial rents to secure tenancy. At the same time, the boom in online shopping has increased the need for logistics centres, with a specific focus on last-mile logistics facilities – strategically positioned to facilitate the final leg of a delivery from warehouse to customer.

In response, logistics companies are favouring multi-storey distribution centres in close proximity to consumers, abandoning the conventional approach of distant locations from city centres.