Logistics Real Estate had a record breaking 2021 and a strong 2022. The long-term trends may still hold, but investor preferences are changing.
Record Breaking 2021. Strong 2022.
Logistics real estate across both the US and Europe had a record breaking year in 2021. Followed by a strong 2022. Are the long term trends that drove these record years in tact and sustainable in 2023 and beyond?
The two core demand driven long term structural drivers of these record breaking years - e-commerce growth and supply chain reconfiguration - may continue to sustain low vacancy rates and drive rental growth in 2023. But as demand has increased, occupier ESG preferences have evolved. Investment managers are starting to reflect this in the assets they seek for their portfolios.