Private capital has become more active in the logistics and industrial investment market in 2024, accounting for 53% of transactions by value so far in the year. Not only have they been the most active buyers, but private capital investors are also now playing in price brackets that institutional groups have historically dominated.
Key Findings:
- Private or non-institutional capital has become more active in the logistics and industrial investment market, accounting for 53% of transactions by value so far in 2024 (~$400 million), compared to the long-term average of 15%. This follows the acquisition of more than $1.0 billion nationally in 2023 (20% of total volumes) from private capital investors.
- Not only have they become more active, but there has also been a large jump in demand for larger assets that institutional groups have historically dominated. Notably, this has included acquisitions by both domestic and offshore family offices.
- While private capital has been active at certain points in past cycles, particularly post-GFC, our view is that they will account for a higher share of deal activity going forward. This increased activity will stem from a shift in appetite from private investors who had historically invested in other commercial sectors but are now reweighing to L&I at a similar price point.
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