Is industrial property still a good investment in Australia in 2026?
On our model, industrial ranks as the best value of the major sectors on a five-year view, with the lowest modelled downside — the case rests on durable income and structural demand (logistics, e-commerce, onshoring) rather than a cheap entry price.
It's not a bargain in absolute terms — it screens mildly rich, so some softening is already in the price. The one thing to watch is supply: the new-build pipeline is rising, and a wave of new sheds is the main risk to rents and yields. Best value doesn't mean risk-free.
Why is industrial the strongest commercial sector?
Two reasons. Demand is structurally supported — logistics, warehousing and data-adjacent uses keep growing regardless of the office debate. And its income is durable, with long leases and fixed uplifts. That combination gives it the lowest modelled five-year downside on our read, even though yields are keen.