Why AI shopping will be a boon for industrial real estate

Industrial real estate is expected to be the core enabler of a retail revolution that will see consumers delegate their buying decisions to AI assistants.

Agentic commerce, or ‘A-commerce’ is a shopping experience expected to be available in Australia by June where AI assistants will autonomously research products, compare prices, evaluate availability and complete transactions on behalf of consumers.

It’s a shift away from browsing websites to buy goods, or visiting stores, and will require retailers to rebuild their supply chains to fulfil the promise of instant access to optimal product availability, pricing and delivery.

"The customer experience will need to be at the forefront of the minds of retailers looking to lean into this sphere," says Nathan Bingham, head of Occupier Services Australia, JLL. "That requires a very strong understanding of inventory holdings and location, ensuring that the customer receives what they want when they want it.” 

Analysis from JLL finds that A-commerce will make it easier to buy highly substitutable goods online, optimising for price, availability and speed.

However, meeting the platform’s exacting requirements will rely on industrial facilities with advanced inventory management systems, strategic locations near large populations and integration with automated fulfilment technologies.

“It all comes back to having the right systems to provide clear visibility of merchants’ stock holdings across their entire supply chain – an area that is already being optimised with AI," Bingham says.

"Most retailers are building out the tech stack to make the AI experience frictionless and efficient, but if the physical fulfilment process is flawed with delays or stock outs, that can damage the client/customer relationship before AI gains traction.” 

Bingham adds that it is this vulnerability that will place premium value on industrial assets that can deliver consistent, reliable performance.

According to JLL’s analysis, A-commerce will first transform consumables categories where shoppers prioritise convenience over experience, such as groceries, household supplies and personal care products. As adoption accelerates, demand will intensify for warehouse facilities offering:
 

• Proximity to urban population centres for rapid delivery

• Advanced warehouse management systems providing real-time inventory visibility

• Infrastructure supporting automated picking and packing technologies 

• Flexible configurations accommodating evolving fulfilment strategies

Retailers that master the integration of A-commerce with supply chain execution will have a competitive advantage that can only be gained when sophisticated industrial facilities are part of the infrastructure. 

Capital will likely follow as offshore investors look increasingly to Australia, says Kate Low, Head of International Capital, ANZ at JLL.

"Investors are looking for defensive yields in an environment where traditional office assets face structural challenges and residential development remains constrained by planning regulations," she says.