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The Significance and Performance of Industrial Investment Property in Australia

Author/s: Graeme Newell

Date Published: 1/01/2007

Published in: Volume 13 - 2007 Issue 3 (pages 361 - 388)

Abstract

Industrial property is an important property investment sector and contains both direct industrial property and industrial LPTs. The purpose of this paper is to assess the significance of industrial property, the importance and performance of industrial property type, size, value and geographic region in Australian industrial property and the strategic role of direct industrial property and industrial LPTs in a mixed-asset portfolio over Q3:1995-Q2:2006. Risk-adjusted performance analysis is used to assess the added-value of industrial property in a portfolio, with the portfolio diversification benefits of industrial property also assessed. Industrial property and industrial LPTs are shown to provide consistent and well-performed risk-adjusted returns, although both industrial property and industrial LPTs has seen some loss of property portfolio and mixed-asset portfolio diversification benefits in more recent years.

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Keywords

Industrial Lpts - Industrial Property - Industrial Property Type - Performance Analysis - Portfolio Diversification

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