A 60,000 square metre Sydney warehouse leased to Fantastic Furniture and logistics giant DB Schenker has set a new benchmark for institutional-grade industrial property in Australia after being acquired by Centuria Industrial REIT for $200.2 million on a yield of 3.6 per cent.

The record low return – a reflection of the weight of capital seeking exposure to the asset class, where demand is being driven by the e-commerce boom – eclipsed the 3.62 per cent yield struck in May for a smaller Sydney warehouse, the 35,000sq m Best & Less distribution centre, which AMP Capital sold to a Lendlease investment platform for $130.1 million.