Unprecedented transaction volumes and growing investor interest in the logistics sector underscore its increasing importance as an asset class, experts told PropertyEU's Logistics Investment Briefing which was held at Expo Real in Munich.
Unprecedented transaction volumes and growing investor interest in the logistics sector underscore its increasing importance as an asset class, experts told PropertyEU's Logistics Investment Briefing which was held at Expo Real in Munich.
‘We are very bullish about demand for logistics,’ said Mo Barzegar, president and CEO of Logicor. ‘Investors have realised that industrial logistics delivers good risk-adjusted returns and e-commerce is the icing on the cake. It is a good story that resonates with everyone.’
Rents have been rising in the past year, a trend that has been most visible in the UK but is now filtering down to continental Europe.
‘The UK has been on fire, as it is the most sophisticated e-commerce market in Europe, but evolution is coming to Europe too,’ said Philip Dunne, president Europe at Prologis. The rise in urban logistics, driven by the need to optimise product delivery and customer convenience, is another trend that will spread from the UK to the rest of Europe. ‘There is a two-tier market at the moment, but demand has grown a lot across the board since last year,’ said Ian Worboys, Ceo of P3 Logistics Parks.
The sector is embracing change and technological innovation, said Alexandra Tornow, associate director of EMEA research at JLL, as supply chains are being reconfigured and big data and connectivity play a bigger role. Prospects are bright, she said: ‘There is not enough supply in Europe to meet demand, so we expect the yields to close the gap with other asset classes.’
