_Q&A with Ian Barter, Managing Director Australia, Frasers Property Industrial

Q. What are your predictions for Australia’s industrial property market for the remainder of this year?

A. We ’re expecting a bit of a mixed bag for the rest of 2025, but overall, there’s reason to feel cautiously optimistic. Vacancy rates are starting to rise as new supply comes online, and demand softens a touch—but we see that as a short-term adjustment. The fundamentals for industrial property remain strong, especially in land-constrained markets where quality space is still in high demand.
We’re continuing to see rental growth in some areas, though it’s definitely not uniform across the board. What’s clear is that well-located, high-quality assets are still attracting strong interest from both occupiers and investors.
More broadly, cost-efficiency and sustainability are becoming even bigger drivers of decision-making. Everyone’s looking for smarter, greener, and more future-ready solutions—and that’s shaping how deals are being done.

Q. What impact do you think tariffs will have on Australia’s industrial property market, and are you making any changes to the way you do business as a result?

A. The recent U.S. tariffs have definitely added some uncertainty. They’re shaking up global supply chains and making countries rethink how they trade. So far, we’ve seen ripple effects like inflation concerns, recession risks, and a bit of a confidence dip—but it’s still too early to say exactly how it’ll all play out.
That said, demand for industrial space is still sitting above pre-COVID levels, thanks to things like e-commerce growth, infrastructure investment, and population increases. Occupiers are being more cautious—especially with how they manage inventory—but the underlying demand is still there.
From our side, we’re staying measured but optimistic. We’re focused on long-term value and still see strong potential in high-quality assets in core locations. We’re also building new capital relationships to support our growth and working closely with customers to help them adapt—whether that’s through more efficient layouts, better sustainability features, or stronger amenity offerings. It’s all about helping them future-proof their operations while staying aligned with our strategy.

Q. Data centres, which sit under the industrial umbrella, are gaining more traction in Australia. Do you have a strategy for data centres that you can share?

A. We recognise the growing demand for data centres in Australia and see them as a complementary opportunity within our broader industrial portfolio. As digital infrastructure becomes increasingly vital, select sites across our national landbank present strong potential for data centre development—particularly those with the right power, connectivity, and planning frameworks in place and we are exploring those opportunities. Our approach will remain measured and collaborative given the capital intensity, specialised expertise, and extended lead times involved in data centre development and we see the opportunity with Data Centres as not a pivot away from our core business, but rather a strategic extension that aligns with long-term trends in logistics, e-commerce, and technology.

Q. In your view, how will the development around the Western Sydney Airport, which is expected to open late next year, impact the industrial market?

A. The Western Sydney International Airport is already having a noticeable impact on the industrial market, especially in areas like Horsley Park and Kemps Creek. We’ve seen a real wave of investment flow into these regions, with major local and international players setting up operations there in anticipation of the airport’s opening in late 2026.

That momentum is only going to build. Once the airport is operational, it’s going to cement Western Sydney’s role as a key logistics and industrial hub. The Aerotropolis, with its focus on advanced manufacturing, freight, and mixed-use development, will create a really dynamic environment for businesses over time. And of course, infrastructure is always a major driver in our sector. Projects like the $1 billion road upgrade that will improve access to the airport are a huge boost—they make the regio even more attractive for industrial users who are looking for connectivity, efficiency, and long-term growth potential.

Q. Can you share details of your most exciting projects underway or in the pipeline now?

A. One of the most exciting things for me right now is seeing our Premium Estates concept coming to life across the portfolio. We introduced this vision 3 –4 years ago to rethink how industrial estates could integrate sustainability, an elevated building design, and wellbeing into the workplace environment—and it’s been incredibly rewarding to see that vision become reality.

You can see this approach at The YARDS in NSW, Vantage Yatala in QLD and Rubix Connect and Canvas West in Victoria. These are estates that don’t just deliver on function but also lift the experience for the people who work there. The customer feedback has been fantastic, and it’s clear their teams are enjoying the spaces.
The sense of arrival, the landscaping, the outdoor areas, the use of natural light and high quality finishes—there’s a real shift in how these environments feel, and it’s something I haven’t seen before in the industrial space.

Looking ahead, we’ve got two more estates in Sydney on the way—at Kemps Creek and Horsley Park. These will continue to build on what we’ve learned and set a new standard for what modern industrial development can look like.