A simple cardboard box has become the icon of modern commerce. Behind every delivery lies a sophisticated network of industrial real estate that has transformed from the basic warehouse into high technology driven logistic powerhouses.

In a landmark transaction that signals this new era, Burgess Rawson has just facilitated the sale of Australia’s first ever Amazon-leased asset, a watershed moment that exemplifies how global giants are reshaping our industrial landscape.

The sale of Amazon’s West Gosford facility for $10.85 million represents more than just another transaction; it marks Australia’s formal entry into a new age of industrial property.

Located at 9 Marstan Close, this state-of-the-art 2,550 sqm logistics facility serves as a crucial link in Amazon’s last-mile delivery network. Achieving a sharp yield of 4.74%, the property showcases how premier tenant covenants are driving unprecedented value in the industrial sector.

“This sale highlights a fundamental shift in industrial property,’ says Yosh Mendis, Burgess Rawson’s Head of Sydney Agency and Partner. “When a global titan like Amazon with its $2 trillion market capitalisation, commits to an Australian facility, it signals the maturation of our market. Investors recognise that these aren’t just warehouses anymore, they’re essential infrastructure for today’s digital economy.’

The property’s sophisticated features reflect this evolution: high-clearance warehousing, a recessed loading dock, and two floors of light-filled modern office space. With a seven-year lease generating $514,565 annually plus GST and fixed 3.25% increases, it exemplifies the kind of secure, growth- oriented investments that sophisticated buyers are aggressively pursuing.

The industrial sector’s remarkable performance is reflected in institutional grade portfolios, with major REITs reporting occupancy rates above 99.5% and rental review increases averaging 3.7% through 2024. Burgess Rawson’s data highlights the strong performance of the sector, with yields outperforming many other asset classes.

The current yield for metro industrial assets stands at 4.72%, down from 5.38% in 2024 in 2023, showcasing the sector’s growing resilience. These metrics affirm the sector’s fundamental strength, with re-leasing spreads exceeding 12% demonstrating the sustained demand for quality assets.

Burgess Rawson’s position as Australia’s leading industrial property specialist extends far beyond transactions. Through our comprehensive asset management and leasing services, our agency maintains intimate knowledge of tenant requirements and market dynamics across every state and territory.

This hands-on management experience, combined with our renowned Portfolio Auctions held every six weeks, provides unparalleled real-time market intelligence that benefits clients across the full property lifecycle. This deep market engagement reveals fascinating regional variations in industrial trends.

While Sydney’s Western Growth Corridor commands premium rates for logistics facilities, Melbourne’s western industrial precinct has seen a surge in manufacturing tenants seeking larger format space.

Brisbane’s Trade Coast continues its evolution into a multi-modal logistics hub, while Perth’s industrial market benefits from resources sector strength, particularly in specialised warehousing and workshop facilities.

The transformation of industrial real estate is perhaps best exemplified by the growing specialisation within the sector. Cold storage facilities now incorporate sophisticated temperature monitoring systems, while medical-grade warehousing must meet stringent compliance requirements.

Data centres demand specific power and connectivity infrastructure, and manufacturing facilities increasingly accommodate automation and robotics. This technical complexity makes expert asset management and leasing capabilities more crucial than ever.

In a remarkable demonstration of market dominance following the historic Amazon transaction, Burgess Rawson in February, orchestrated a series of sales across three states, securing four premier Civilmart facilities for a combined value of $39.497 million at an average yield of 5.73%.

The portfolio of assets – spanning Pakenham (VIC) plus off-market deals of Corio (VIC), Cairns and Rockhampton (QLD) all secured by global construction materials powerhouse Civilmart, recently acquired by Fortune 500 giant CRH, exemplifying how premium industrial assets are commanding attention from the world’s most formidable companies.

“The appetite for quality industrial investments remains incredibly strong,’ said Justin Kramersh, Senior Sales Executive, who negotiated all four transactions. “We’re seeing both private and institutional investors aggressively pursuing assets with strong fundamentals and blue-chip tenants, which has driven these sharp yields despite a higher interest rate environment.’

This competition among buyers is particularly evident in specialised industrial assets with unique capabilities. In November 2024, a state-of-the-art medical industrial facility in Heatherton (VIC) sold under the hammer at auction for 25% over its reserve price. Purpose-built for stem cell storage and leased to Cellcare, the property transacted $7.38 million at a remarkable 4.61% yield.

These premium transactions are taking place against a backdrop of extraordinary market activity. Over $180 million worth of industrial assets have changed hands in recent weeks alone. EG Funds scored a massive windfall from two Sydney industrial sales totalling $101.1 million, realising a 41% capital gain in just four years.

Meanwhile, the $13 billion Charter Hall Prime Industrial Fund has acquired a significant industrial site in Brisbane’s Darra for $80.55 million, with plans to develop a $350 million estate adjacent to its existing $250 million development.

The breadth of recent transactions demonstrates both the sector’s maturity and its potential. Premium assets continue attracting strong yields, from e-commerce giants to specialised medical facilities, automotive services to food logistics.

Sustainability has become increasingly crucial, with modern facilities incorporating solar power, energy-efficient systems, and green building certifications to meet tenant demands and attract long-term investment.

What makes the industrial sector particularly appealing is its accessibility to a broad range of investors. Entry-level assets, such as storage units or compact warehouses, start from under $450,000, while expansive distribution centres and advanced manufacturing facilities command prices well into the millions.

Burgess Rawson’s current national portfolio reflects this diversity, with assets across every sub sector on offer, including automotive, cold storage and manufacturing. We are exclusively offering two strategic PFD leased assets in Devonport (TAS) and Geebung (QLD).

Also included in the plethora of premium opportunities is another trophy Civilmart asset located in Wodonga (VIC), anticipated to attract fierce competition through an Expressions of Interest campaign.

For investors seeking stable returns and growth potential, industrial property’s transformation from humble beginnings to technological sophistication presents compelling opportunities.

Through our integrated service platform spanning sales, leasing, and asset management, combined with real-time market insights from regular portfolio auctions, Burgess Rawson provides comprehensive support for investors navigating this dynamic sector.

As industrial assets cement their position as essential infrastructure for the digital economy, our deep expertise across all industrial subsectors and geographies positions Burgess Rawson as the partner of choice for accessing this thriving market.

Portfolio Magazine