Damian Collins is the Chairman of Westbridge Funds Management, Managing Director of Momentum Wealth and a highly experienced property investor with more than 30 years in the market. A former President of the Real Estate Institute of Western Australia (2018-2022), Damian has built a business with more than $2 billion in real estate assets under management. He continues to apply his expertise to guide strategic investment decisions and advocate for the real estate community.

FuturePlace: Market outlook – from your perspective in WA, how do you see the industrial and logistics markets in Perth and Sydney performing, and what fundamentals should investors be watching?

Both Perth and Sydney are enjoying strong conditions in the industrial and logistics sector. Demand is high and vacancy rates are close to historic lows. Perth’s industrial market is the second tightest in the country after Adelaide, with a 2.8% vacancy rate, according to the latest data from Colliers. Sydney also remains tight at just 3.3%, significantly below the June 2020 high of 4.9%. The drivers in both markets are similar – the growth of e-commerce, supply chain restructuring and the need for modern, well-located facilities.

In both markets, supply is the challenge. Zoned and serviced industrial land in the right locations is limited and rising construction costs slow the delivery of new stock. That scarcity is a key factor in the rental growth we are seeing.

The difference is in scale and demand profile. Sydney is a larger, more diversified global hub with constant demand from e-commerce, logistics and manufacturing. Colliers’ research revealed gross industrial take-up reached 284,547sqm in Q2, 2025 in Sydney, marking a 20% increase from the same time last year.

Perth’s market is smaller but benefits from being the logistics and service centre for WA’s resources sector. That creates a unique layer of resilience – when the resources sector is strong, so is demand for industrial space.

Because Perth starts from a smaller base, rental growth can sometimes outpace Sydney in percentage terms. But in both markets, the fundamentals are the same – own quality, well-located industrial property and you’re well positioned for the long-term.

FuturePlace: Investment strategies – with so much competition for logistics assets and yields tightening, what risks should investors be aware of and how do you identify long-term value?

When yields are tight, you’ve got less margin for error – so discipline is critical.

The first thing we look at is supply and demand for that type of premises. It’s not just about the vacancy rate in an area. We want to make sure that the property is fit for purpose, not only for the current tenant, but also any future tenants.

We also look at replacement value. If the property is selling for over replacement value, your run the risk that a developer may be able to produce another property and entice your current tenant away at the end of the lease term. If you purchase below replacement value, that’s less likely as the developer will not build if they can’t make some form of profit.

We also consider tenant quality and lease security. In commercial property, your income is only as strong as your tenant. A long lease to a financially sound business in the right location is worth paying for. We look closely at the tenant’s business model, financial position and the lease terms – rent reviews, outgoings and renewal options.

Interest rate sensitivity is also worth looking into. In a low-yield environment, even a small rate rise can erode returns, especially if you’re highly geared. Always run the numbers at higher interest rates – if the deal only works in perfect conditions, it’s not the right deal.

At Westbridge, we focus on fundamentals that drive value over the long term:

· Strong land value – land appreciates, buildings depreciate

· Adaptability – can the property suit a range of tenants in future?

· Value-add potential – can we expand, reconfigure or improve the lease profile?

When the market’s hot, focus on the fundamentals. That’s what protects and grows your capital.

FuturePlace: Capital and syndication – Westbridge runs property funds. What lessons can investors take from your approach to pooling capital and structuring deals in a competitive market?

Syndication is about giving investors access to assets they couldn’t buy on their own, and doing it in a way that’s well-managed, transparent and aligned.

The first lesson is scale matters. Pooling capital lets you acquire institutional-grade assets – better locations, stronger tenants and more secure income streams.

Another is expertise and connections win deals. In a competitive market, you need the networks and due diligence capability to move quickly. Our team’s relationships and track record mean we often secure off-market opportunities.

The third is asset and sector selection. An investor needs to have confidence that the fund manager will choose the right sectors and assets in those sectors. Most investors who have gone into funds with a high office component have seen losses in their capital value. Make sure you look at the managers track record and understand how they choose sectors and assets.

For investors, the takeaway is simple, you do not have to do all of this on your own and there is no one-size-fits-all approach. Partner with a manager who has a proven track record, a clear strategy and full transparency. The right fund manager can give you diversification, quality assets and professional management – without the headaches of direct ownership.

FuturePlace: Diversification – you’ve often spoken about evolving a portfolio from residential into commercial assets over time. Where does logistics fit into that journey?

A balanced portfolio changes shape over time and the best property portfolio is determined on an individual’s personal circumstances. Residential property investing is a great spot to begin a property investment journey. Commercial property investments tend to be more sophisticated yet are crucial to develop a higher-yielding property portfolio.

This is essential for those seeking a higher income from their property investments. My general philosophy, which is discussed in my book, Property Investment Roadmap: How to build an income from property for life, is that residential property investment is a great place to start investing, but commercial property investing is where you want to end in retirement, as it produces better cash flow returns to support you.

That’s where logistics comes in. Well-located industrial assets typically offer longer leases and tenants who cover most of the outgoings. That means more predictable, inflation-linked income – exactly what you want when you’re no longer working full-time.

The challenge for private investors is the high entry cost and specialist management required. That’s why managed funds are so effective – they give you access to high-quality logistics assets for a fraction of the direct purchase price, with the benefit of professional oversight.

FuturePlace: Consulting insights – when working with investors in industrial and logistics, what’s the most common mistake you see, and how do you help them get it right?

The most common mistake is bringing a residential mindset into commercial property. In residential, location is about lifestyle and amenities. In industrial, it’s about access to transport corridors, ports and labour. In residential, a few weeks’ vacancy is manageable. In industrial, a vacancy can last months – or longer – and that can be very costly.

I recommend the following:

1. Educate yourself – after 30 years, I can say with certainty that people who take the time to research the market are not only more engaged as investors, but also more confident and usually make better decisions

2. Leverage specialist expertise – you do not have to work all of this out on your own. Work with commercial buyer’s agents (if going it alone), or invest with fund managers who know this market inside out

It’s also about understanding your own risk profile and how it aligns with your property investment goals. Having a clear action plan tailored to your personal circumstances is key. It’s about making informed decisions that suit your financial situation and long-term objectives. Industrial and logistics properties may be the right choice of property for you.

Damian Collins is a panellist at 2025 Industrial Real Estate Summit. To find out more about the event, click here.