KRISTY KERSWELL
Industrial & Logistics Market Outlook A brief summary of the trends in the industrial and logistics market and the expected trends in this market in 2021 relating to vacancy, capital value, opportunities and challenges.
Whilst retail and office markets have felt the impacts of COVID-19, industrial and logistic assets have remained resilient, experiencing strong capital value growth and yield compression over H2 2020 and H1 2021 (m3Property, 2021 & Savills, 2021). This asset class has experienced continued demand from both domestic and foreign investors, as it has been viewed as a safe haven for investment in an otherwise turbulent and uncertain commercial market (m3Property, 2021). Whilst the asset class as a whole has experienced strong growth, well-located warehouse and logistics facilities servicing densely
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populated areas have been attributed as the main cause of meteoric capital value growth and yield compression experienced over the last three years. Other commercial asset classes have experienced COVID-19 related rises in vacancy rates and downwards pressure on rentals in some market segments, however industrial and logistics assets have bucked the trend, experiencing continuous demand from tenants over the last 12 months. Growth in e-commerce and online shopping has been driving the demand for warehouses in strategically advantageous
