Australia's industrial property sector is set for a return to health next year according to the latest research data.

The latest research report from CBRE forecasts that low interest rates and sustained declines in the Aussie dollar will translate into greater growth in the nation-wide industrial property sector throughout 2014 and 2015.

The Q3 2013 CBRE Australia Industrial MarketView Report says rosy sentiment amongst consumers and increased dwelling investment will serve to foster economic growth in 2014, which will in turn drive industrial expansion over the course of the next two years.

This follows a slip in industrial economic output of 0.1 per cent in the year to June 2013, as a a result of major declines in activity for utilities, transport, storage and postal services.

CBRE’s data for the third quarter indicate that Australia’s A-grade and B-grade warehouses have already seen significant year-on-year gains in capital values, advancing 1.6 per cent and four per cent respectively in September.

A-grade warehouses in Melbourne have logged the biggest gains in their capital values, rising 4.9 per cent in the past year, while Perth has also performed well with a 2.6 per cent gain.

While capital values have witnessed significant gains, industrial rents throughout the country have for the most part hovered at the same level over the past year. A-grade warehouse rents remained unchanged at $103 per square metre, although B-grade warehouse rents have posted growth of 2.1 per cent.

A-REITs are already rushing to raise their holdings of industrial assets, buying up to $110 million worth during the third quarter. Private investors secured a further $80 million worth of assets in the category during the same period.

Australia’s southeast is the most popular destination for investment in industrial property assets, with Victoria and New South Wales enjoying sales of $104 million and $88 million respectively in the third quarter.

CBRE expects a further 1.5 million square metres of industrial space to reach completion in 2013, for a modest decline compared to the average for the past five years of 1.6 million square metres.

Sydney and Brisbane have the largest volume of assets in development, with growth of 1.6 per cent and 2.2 per cent respectively in 2013.