Real Estate Industry Report 2018
28 September 2018
Logistics property has seen a stellar rise in its fortunes over the six years that our real estate team has been carrying out its annual research into the UK real estate sector.
It is no exaggeration to say that even in 2013 warehouses were seen as the Cinderella of property, with the greater appeal and perceived glamour of mainstream office and retail assets often leaving logistics and industrial properties neglected among investors.
However, something was beginning to stir, and a tide of capital has flowed into logistics over the last five years as global players have been captivated by the transformative impact of e-commerce on the sector.
In our report, we consider the overall mood of the real estate market and then go on to ‘unpack’ the warehouse sector in detail. We not only look at the drivers making logistics property a highly attractive asset class, but also consider the varied challenges facing the sector as it evolves in the face of rapid technological change and intensifying consumer demands.
With e-commerce predicted to be on an upwards trajectory, players in the retail and property worlds are looking to reinvent their approach to logistics so they can service this. With centrally located assets in short supply and environmental pressures growing in cities, new solutions are being examined.
To better understand the challenges facing the sector we interviewed six logistics property leaders and one major online fashion retailer. We also polled over 350 real estate sector experts (including 160 investors) and over 250 UK retail decision makers, to get a full view of the demand/supply equation at play in retail logistics in particular.
What’s clear is that as the sector’s popularity inevitably generates increasing competition, investors, developers and retailers alike need to ‘box clever’ to stay ahead of the pack.
We hope you find the results interesting and look forward to discussing them with you.