A different way to play data, defence, AI and automation

Please note, this interview was recorded Wednesday 11 February 2026

Data volumes are exploding. Defence spending is rising. Automation is accelerating. Artificial intelligence is reshaping supply chains in real time.

Most investors express those themes through listed equities. But there is another, less obvious way to gain exposure to the same structural forces.

After a sharp correction from 2022 to 2024, capital has returned to industrial property markets. Transaction volumes rebounded in 2025 and confidence has stabilised. Yet as we move into 2026, the opportunity is no longer about recovery. It is about positioning for the next wave of structural demand.

When I caught up with Laurence Parisi, Head of Direct Property at Trilogy Funds, the discussion quickly moved beyond cyclical repair and into long-term drivers.

“I think if you stick to the fundamentals, you should be fine through the medium to long-term," he says.

That discipline now sits alongside powerful tailwinds: defence infrastructure, e-commerce growth, automation-driven facility requirements and constrained supply in strategic markets such as Darwin.

For investors looking for exposure to data, defence, AI and automation without buying the obvious names, this may be a different way to play the theme. Check out the video above for the full insights, or read a summary below. 

INTERVIEW SUMMARY

Recovery is behind us. Selectivity begins.

The defining feature of 2025 was recovery.

“The biggest theme in 2025, no doubt, was the recovery of the commercial property market in Australia," Parisi says.

"After a correction period of 2022 to 2024, we saw the reemergence of transactional volumes in 2025, everyone from syndicators through to international offshore capital was active again in the market.”

Liquidity returned. Offshore capital re-engaged. Pricing stabilised.

But 2026 requires sharper underwriting. Increased transaction volumes encouraged pockets of speculative development, pushing vacancy modestly higher, even if still below long-term equilibrium.

“There needs to be a cautious lens applied; with that increase in vacancy, you need to be mindful of your underwriter assumptions when you're acquiring assets, the reliability of an asset, incentives and market rental growth forecasts when looking at new acquisitions," he says.

In other words, discipline matters more now than at the bottom of the cycle.

Capital is competitive. Fundamentals win.

Industrial and logistics assets attracted significant institutional capital in 2025. Competition intensified. That does not concern Parisi.

“No, in short, it doesn't worry us. It's nice to have that much focus on the industrial space. It does make acquiring assets somewhat more difficult," he says.

"However, for us, it's all about remaining disciplined; what you're buying, where you're buying, the quality of the tenant, and the income stream that supports that piece of real estate.”

Rather than competing directly in tightly held CBD logistics markets, Trilogy Funds has focused on metro-adjacent and regional hubs.

“Fundamentally, they're very similar to the assets that you find in the major metro markets. Quality tenants, modern real estate, new builds, long leases, great rental growth. The fundamentals are all very similar. However, the markets that we have typically focused on are just smaller," he says.

Large institutions often cannot deploy sufficient capital in these markets. That creates inefficiencies. Add long leases and “very sticky” tenants, and the return profile can compare favourably with more crowded metro assets.

Darwin and the defence infrastructure theme

If investors want a practical expression of the data and defence thesis, Darwin is a compelling case study. Trilogy Funds recently acquired a modern distribution facility in a key logistics corridor.

“We like Darwin as a market. This was our second acquisition in Darwin. It really is the gateway north of Australia for logistics and defence," Parisi says.

Darwin sits at the intersection of several structural forces. Its proximity to Asia positions it as a strategic logistics hub. Defence investment is increasing. Resource exports remain significant. Infrastructure spending continues.

From a supply perspective, the dynamics are unusually supportive.

“The demand supply dynamics are very favourable. From a landlord perspective, there's very low risk of it being oversupplied.”

Why? Because building is expensive.

“The new supply is hampered by the cost. It's prohibitively expensive to build in Darwin, which means that you're not going to exhibit speculative development, which means that the equilibrium in the market is maintained," he says.

The latest acquisition reflects Trilogy Funds' core criteria: a strong tenant relationship, long lease profile, structured rental growth and a resilient underlying business. It also provides exposure to a region benefiting directly from defence infrastructure and trade flows.

For investors seeking a real asset lever to defence and logistics growth, this is an alternative pathway.

E-commerce, automation and the just-in-case economy

The data and automation story extends well beyond Darwin.

“Online retail sales represent about 13% in Australia, which still lags a lot of the developed countries in the world. So we see this as a structural tailwind for the industrial market," Parisi says.

As digital retail sales expand, so too does the need for physical infrastructure.

“What that means ultimately for a landlord or a tenant is you need to focus on larger, more modern facilities, higher clear spans, the ability to move more parcels through a facility more often," he says.

Automation and artificial intelligence are increasingly embedded within these facilities.

“It is becoming more critical as there's more pricing pressure on moving parcels around and more stress to get parcels where they need to be quicker," he says.

The shift from just-in-time to just-in-case inventory management following COVID has amplified space requirements. Retailers and logistics operators hold more stock. Throughput demands are higher. Facilities must be designed to integrate automation from day one.

In that sense, warehouses are no longer passive storage boxes. They are operational infrastructure for a digital economy.

Income in a risk off world

There is also a broader market context to consider.

“There's a bit of a risk off play in the commercial property market at the moment so that there's a reversion back to long lease real estate, which fits well with our portfolio and our methodology," Parisi says.

Long leases, reputable tenants and structured rental reviews are increasingly prized as volatility persists across equity and bond markets.

For investors focused on data, defence, AI and automation, the instinct is often to reach for growth equities. But those themes also require land, sheds, logistics hubs and modern facilities capable of supporting them.

Sometimes the most powerful structural shifts in markets are not expressed through code or chips, but through prime locations, concrete and steel.