The attraction of logistics over other property types – it nudged residential from the top spot as investors’ most favored asset – was a trend that gathered speed in 2018. The real estate world, it seems, views it as the best path right now to finding value and delivering growth. Here are some numbers to help tell the story. Just over $12 billion was raised for logistics-focused funds last year, according to PERE fundraising data, and of the total $28.6 billion raised for sector-specific funds, logistics accounted for 43 percent.
For many of the experts contributing to this edition of Investing in Logistics & Distribution, the onward march of e-commerce is a key driver of investor interest for the sector. As consumers switch to online shopping in higher numbers each year, the need for more sheds grows in tandem; it is estimated that millions of extra square footage of warehouse space is required in the coming years to keep pace.
Investors have gotten the memo.
Download the presentation here.
Download the full report here.