June 2025.
Industrial Property Continues to Lead the Pack for Private Investors in 2025
Industrial real estate remains the preferred sector for private and family office investors in 2025 — both in Australia and globally — according to Knight Frank’s newly released Wealth Report 2025.
Australia saw US$15.9 billion in industrial investment in 2024, with strong demand underpinned by activity in data centres and ongoing demand from e-commerce, logistics, and manufacturing sectors.
Notably, Knight Frank’s survey of 150 family offices reveals that industrial assets top the list of preferred real estate investments for Australian investors:
42% of family offices identified industrial as their top target
Followed by 21% favouring data centres
And 18% focused on infrastructure
“The industrial sector remains one of the strongest sectors of the Australian commercial property market,” said James Templeton, Knight Frank National Head of Industrial Logistics.
“The market has cooled from the boom conditions we saw for several years, but it remains one of the most stable sectors, with rents continuing to grow, albeit at lower rates, and ongoing tenant demand.”
Knight Frank Chief Economist Ben Burston adds:
“With a more favourable macro climate following the first interest rate cut and the return to growth in asset values, investor demand for industrial assets is resurgent — and we expect the sector to lead the Australian market recovery.”
Why Industrial Remains the Sector to Watch
According to Knight Frank, industrial property continues to outperform other commercial sectors due to:
✅ Rising occupier demand from logistics, e-commerce, and local manufacturing
✅ A limited pipeline of high-quality supply
✅ The appeal of resilient, income-generating assets in uncertain economic conditions
DCP’s Approach: Turning Industrial Potential into Investor Performance
At Direct Commercial Property (DCP), these findings align closely with what we’re seeing on the ground.
Our strategy is focused and proven:
🔍 Targeting well-located, underappreciated industrial assets
🔧 Enhancing value through proactive asset management
📊 Delivering stable income and long-term capital growth for our investors
We’re also seeing institutional capital increase its allocation to industrial, which further validates the strength of the sector. But for private and wholesale investors, the opportunity to secure strategic positions with long-term upside remains very real — and very accessible.
Source: Knight Frank Wealth Report 2025, based on a global survey of 150 family offices and high-net-worth investors. Industrial continues to be the favoured commercial real estate sector for private investors – Knight Frank
