Australia Major Report - Australia's E-Commerce Trend and Trajectory

07 jun. 2021

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The expansion of Australia’s e-commerce sector is transforming the Industrial and Logistics sector. Online sales recorded a rapid and lasting increase during the COVID-19 pandemic, currently at 13%. Floorspace absorption from this sector reached an all-time high last year with around 1 million sqm of logistics space being absorbed from Retail Trade occupiers. We forecast that 490,000 sqm p.a. of additional e-commerce-dedicated logistics space will be required by 2025 in Australia to support the growth of internet sales. Australia’s current supply pipeline indicates a shortage of new space required to meet future e-commerce demand. Therefore, capital and rental value uplift will continue and vacancy is likely to remain at relatively low levels over the next 18 months. This report provides greater context of Australia’s recent growth in e-commerce and forecast, the factors driving growth now and in the future, and the impact of e-commerce on logistics property.