Warehouse space in prime time amid e-commerce boom
Industrial property has performed well off the back of an e-commerce boom giving strong rental growth to the sector.
BDO’s latest annual survey showed industrial REITs recorded a 26% total return over the year to June 2018. The rental growth for industrial property led to a strong performance by the listed industrial stocks.
Australian real estate investment trusts with industrial properties were the best performers in the survey, with Centuria, Industria, Charter Hall Group and National Storage all ranking in the top 10.
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The S&P/ASX 200 AREIT Accumulation Index showed the listed property trusts delivered a total return of 13.2% over the 2017-18 financial year, matching the broader market. This was a rebound for the sector after the negative 6.3% return in 2016-17.
National leader of real estate and construction for BDO Sebastian Stevens says: “The reliance and need for warehouse space is at an all-time high, driven by advancements in the e-commerce sector.”
“Retailers rely on supply-chain efficiency to deliver goods with speed, and this has had a big effect on the industrial property market which has spilt over into demand for the industrial REITs.”
This article originally appeared on www.theaustralian.com.au/property.
