Australia Warehousing And Storage Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Australia Warehousing And Storage Market Trends and Insights

Booming E-commerce Demand for Last-Mile Fulfillment

Online retail spend hit AUD 69 billion (USD 46 billion) in 2024, a 12% jump that forced retailers to abandon single-node models for micro-fulfillment centers within 50 km of population clusters. Facilities ranging 5,000-15,000 m² now dominate lease inquiries, and Amazon’s six-site rollout added 200,000 m² of capacity during 2024, signaling sustained demand for urban infill warehouses. Inventory turns of 12-15× annually versus 4-6× in legacy retail distribution intensify the need for high-clearance buildings equipped for robotics, pushing premiums on power-dense sites. These shifts anchor the Australia warehousing and storage market near consumption centers rather than ports^{[1]“Inland Rail Project Overview,” Australian Rail Track Corporation, ARTC.COM.AU} .

Growth of Cold-Chain Logistics (F&B, Pharma)

Australia maintains just 0.4 m³ of cold storage per urban resident against 0.6 m³ in the United States, leaving a structural deficit of 2.5 million m³. Pharmaceutical biologics and vaccine flows require 2-8 °C storage, commanding rents 40-60% above ambient space. NewCold’s AUD 180 million (USD 112.10 million) automated site in Melbourne with 45,000 pallet positions illustrates the capital intensity behind this expansion. Dual-certified facilities meeting FSANZ and TGA standards emerge as a preferred model, especially for exporters chasing premium Asian food markets^{[2]“National Robotics Strategy,” Department of Industry, Science and Resources, INDUSTRY.GOV.AU} .

Government Infrastructure Investments (Ports, Inland Rail)

The AUD 15 billion (USD 9.34 billion) Inland Rail is reshaping freight economics by slashing unit costs 30-40% on corridors over 500 km. Moorebank Intermodal Terminal’s 1.7 million TEU capacity stimulated 200,000 m² of adjacent warehousing within a year, proving the pull effect of rail-port nodes. Port of Melbourne’s 8 million TEU 2030 target and National Reconstruction Fund incentives amplify industrial land demand within 20 km port radii where rents already carry 25-30% premiums.

Warehouse Automation and Robotics Adoption

National Robotics Strategy goals of 25% productivity gains push operators toward automated guided vehicles, goods-to-person systems, and AI-driven warehouse management software. Implementation costs are falling 20% per year, and Coles’ Witron center recoups its capex in 3-4 years on AUD 40,000-60,000 labor savings per full-time equivalent. Accuracy rates rising to 99.8% reduce returns and raise throughput, strengthening margins despite wage inflation.

Scarcity and Cost of Prime Industrial Land

Sydney prime sites fetch over AUD 1,000/m² and Melbourne vacancies sit at 1.1%, forcing users into outer rings that add 15-25% to last-mile costs. Developers answer with multi-story designs up to 40 m high, but build costs climb 30-40%, lengthening payback windows. Goodman Group’s 2,000 ha land bank underscores how institutional control perpetuates scarcity^{[3]“2024 Climate Report,” Commonwealth Bank of Australia, COMMBANK.COM.AU}.

Labour Shortages and Rising Wages

The logistics sector carried 47,000 vacancies in 2024, with warehouse roles accounting for a 12% shortfall and wages running 8% ahead of national averages. Technical skill premiums widen as automation spreads, inflating payrolls for mechatronics talent and pressuring margins until efficiency gains materialize^{[4]“National Accounts: State Accounts,” Australian Bureau of Statistics, ABS.GOV.AU}.

Segment Analysis

By Warehouse Type: General Storage Holds Scale as Cold Chain Advances

General warehousing commands 91.81% of the Australia warehousing and storage market size in 2024, a reflection of broad-based distribution requirements spanning consumer electronics to machinery. Stable demand allows operators to amortize technology investments across large footprints, preserving cost leadership. Cold-chain facilities, though a smaller slice, post a 3.73% CAGR to 2030 on pharmaceutical biologics and premium food exports. Australia warehousing and storage market share in refrigerated space rises as multi-zone sites mix ambient, chilled, and frozen chambers, optimizing scarce land. Capital intensity remains high, yet rental premiums of 40-60% sustain attractive yields for investors willing to fund automated high-bay builds such as NewCold Melbourne.

Operators retrofit ambient boxes with HVAC and insulated panels, but purpose-built designs with automated shuttles deliver superior energy efficiency. Utilities sourcing renewable power win tenants facing Scope 3 emissions targets, supporting the cold-chain’s appeal. New health regulations require serialized pharma tracking, elevating compliance costs but locking in longer leases with life-science tenants. Consequently, diversified providers that balance general storage scale with refrigerated nodes hedge demand cycles in the Australia warehousing and storage market.

By End-User Industry: E-commerce Leads, Healthcare Rises

E-commerce and retail captured 33.35% share of the Australia warehousing and storage market size in 2024, propelled by double-digit online sales growth. Peak-season surges demand flexible space, leading retailers to pre-commit to speculative builds near major highways. Healthcare, pharmaceuticals, and life sciences, however, is the fastest climber at 4.63% CAGR, underpinned by sovereign stockpile mandates and on-shoring of advanced therapies. Temperature control, security, and regulatory rigour enable premium rents that outpace ambient yields.

Automotive and broader manufacturing segments maintain steady throughput, supporting specialized racking for bulky parts. Food and beverage flows increase on Asia-bound protein exports, demanding near-port cold-chain capacity. Chemicals and specialty materials remain niche, yet the hazardous-goods premiums enhance profitability for compliant operators. Overall, tenant diversification reduces cyclical risk and supports sustained absorption in the Australia warehousing and storage market.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

New South Wales and Victoria account for about 60% of national capacity, anchored by Sydney’s consumption density and Melbourne’s manufacturing base. Sydney prime rents hover at record highs amid land prices topping AUD 1,000/m², while Melbourne leverages Inland Rail access to draw interstate freight into its western precincts. Queensland’s Brisbane hub grows on agricultural exports and Pacific trade, with cold-chain nodes proliferating near the Port of Brisbane.

Western Australia’s mining sector needs heavy-lift depots for spares and consumables, and Perth precincts add warehouses serving lithium battery supply chains. South Australia rides AUKUS-driven defense logistics, elevating demand for secure, access-controlled facilities. Regional terminals such as Toowoomba and Parkes gain prominence as Inland Rail brings double-stack trains inland, where land costs sit 40-50% below metropolitan averages.

Northern Territory and Tasmania, though smaller, record fastest percentage growth as Darwin and Hobart plug into Asia-centric seafood exports. The Western Sydney International Airport cargo precinct, with 75,000 m² of 24/7 warehousing, exemplifies how air-freight integration reshapes site selection. These dynamics keep absorption robust nationwide, even as the Australia warehousing and storage market grapples with supply constraints.