Planning future-ready logistics real estate
Demand for logistics real estate is at a record high.
According to real estate specialists JLL - who attribute this to “permanent structural change of supply chains and more goods coming through the consumer front door via e-commerce” - the logistics sector represented nearly a quarter of all commercial real estate investment in 2021.
With interest rates on an upward trajectory, and in such a booming, fast-moving market - where vacant space only stays on the market for 4-6 months - there is pressure on businesses to act quickly, while making the right real estate decisions so that they can achieve growth.
There are three main megatrends that are driving the demand for warehouse space.
1. Accelerating levels of e-commerce are causing businesses to reconsider their whole distribution operation and warehousing strategy.
2. Globally, increasing amounts of regulation governing the environmental performance of buildings means that ESG considerations in logistics real estate are under the spotlight.
3. The pandemic demonstrated to businesses the potential vulnerability of supply chains, and the importance of using real estate to build resilience that minimizes future risk exposure.