Industrial property funds have been one of Australia’s best-performing asset classes over the past five years. Driven by e-commerce growth, last-mile logistics demand and chronic undersupply of industrial land near major cities, industrial property has delivered 12-18% per annum total returns in 2021-2024 (Herron Todd White May 2026 Commercial Review).
Industrial Property Fund Performance 2026
| Metric | Industrial Funds | Commercial Office Funds | Retail Funds |
|---|---|---|---|
| Average Yield | 5.5-7.2% | 5.0-6.5% | 5.2-7.0% |
| 5-Year Capital Growth | 48-72% | -8-12% | -5-15% |
| Vacancy Rate | 0.8-2.1% | 12-18% | 8-15% |
| Lease Length | 5-15 years | 3-7 years | 5-10 years |
| SMSF Suitability | High | Medium | Medium |
Why Industrial Property Has Outperformed in 2026
E-commerce penetration in Australia reached 18.4% of retail sales in 2025 (ABS Retail Trade data), driving structural demand for last-mile logistics warehouses within 20km of capital cities. This is the primary driver behind Melbourne’s Truganina/Laverton/Dandenong industrial corridor achieving vacancy rates below 1% and rental growth of 18-24% per annum.
Frequently Asked Questions
Can my SMSF invest in an industrial property fund?
Yes. Both listed industrial REITs (Goodman Group, Charter Hall) and unlisted industrial funds are SMSF-compatible investments. Post the residential borrowing ban, SMSF trustees are increasingly allocating to industrial funds as a commercial property alternative.
What is the minimum investment in an industrial property fund?
Listed industrial REITs (Goodman Group, Charter Hall Industrial) can be purchased from $500 on the ASX. Unlisted industrial funds typically require $50,000-$250,000 minimum investment.
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