The future of logistics real estate
In a report, the research department of real estate developer Prologis Research has evaluated possible scenarios for the future development and demand for logistics real estate.
Prologis Research expects a long-term increase in the structural growth rate of logistics real estate, as the share of consumption-oriented uses in logistics demand has grown, while production and trade-oriented uses have declined.
The researchers also forecast that global e-commerce penetration will erxpand by approximately 150 basis points per year over the next five years. Stationary retail will increasingly require rapid replenishment to remain competitive.
The need for modern warehouse space and decentralised networks is expected to create a global demand for at least three to four billion sqm of modern logistics space in the next cycle.
Location will become even more important as network planning decisions deliver cost control benefits that significantly outweigh real estate costs - which account for only 5% of total supply chain costs. (sh)