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Australia’s industrial property sector continues to evolve, shaped by the rise of e-commerce, advancements in automation and increasing demands for sustainability.
Cadence Property Group chief executive Charlie Buxton will tackle these themes at The Urban Developer’s upcoming Commercial Real Estate Summit, where he will join the panel In Focus: Industrial | Has an E-commerce-Led Boom Reached the Peak or is There More to Come?
With extensive experience in delivering large-scale industrial projects such as Southside Industrial Estate and Keylink, Buxton provides insights into the opportunities and challenges facing the sector.
Learn more about the event here.
While e-commerce boomed during the pandemic, the market has since settled. Buxton remains optimistic. “E-commerce penetration dipped after lockdowns but we’ve seen recovery since mid-last year,” he said.
Australia’s e-commerce rate of 13 per cent lags behind the US (16 per cent) and the UK (30 per cent), leaving room for steady growth. “It will continue to grow but at a more moderate pace,” Buxton said.
After a period of rising construction costs and supply chain challenges, Buxton said that the market was starting to recover.
“We have seen a reduction in construction costs since early 2024, primarily driven by market demand, which has introduced a tightening of pricing from the local suppliers and contractors,” Buxton said.
“In the deal-making process, this certainty is essential.”
This recovery was giving developers much-needed certainty, with pricing stabilisation offering a more predictable environment for industrial projects, he said.
Automation is playing an increasingly critical role in shaping the future of logistics and warehousing.
“The integration of automation technologies into warehousing and logistics facilities will continue to be a fundamental part of the design and delivery of most industrial facilities,” Buxton said.
Developers were focusing on future-proofing new builds by ensuring structures, slabs and power supply could support the complex requirements of modern automation systems, he said.
Buxton also highlighted the growing influence of ESG strategies on industrial real estate investments.
“Investors are looking for facilities with high environmental credentials.
“We also see requirements of occupiers to move toward highly energy-efficient facilities,” Buxton said.
He said the shift was being driven by the anticipated need for large occupiers to include Scope 3 emissions in their reporting frameworks, leading to more Green Star-rated developments and carbon reduction initiatives.
Buxton points to global economic trends as a key factor driving industrial property in Australia. “As inflation declines and economic conditions normalise, we expect a revival in investment activity,” he said.
Overseas investors, sidelined by recent uncertainty, are returning to the market, which should lead to an increase in investment volumes.
To hear more from Charlie Buxton and other industry leaders, join the conversation at In Focus: Industrial | Has an Ecommerce-Led Boom Reached the Peak or is There More to Come?, part of The Urban Developer’s Commercial Real Estate Summit.
Date: Wednesday, October 16
Location: Doltone House, Hyde Park, Sydney
Tickets: From $295 + GST
Duration: One-day summit
Featuring: 20-plus experts across office, retail, industrial, and alternative real estate sectors
For more information, go to our event website.
