Bright Outlook for Logistics Real Estate in 2019

Prologis Research has published a report on industry outlooks for 2019.

With both obstacles and opportunities on the horizon, what does 2019 have in store?

A recent report published by Prologis Research points to a good year ahead for logistics real estate despite uncertainty (Brexit, US-China trade tensions etc.). Net effective rents, which rose by 4.5% in 2018, should enjoy similar growth in 2019. The report also pointed to encouraging customer sentiment, with strong occupier demand expected in 2019 coupled with disciplined supply, land scarcity and particularly low vacancy rates.

Thriving e-commerce, urbanization and the reconfiguration of the supply chain in Europe are driving the sector's momentum, as is the economic growth expected in many countries. On the continent, a number of countries have reported strong rental growth for several years and others are starting to observe the same trend.

Prosperity in logistics real estate, then, looks set to continue, despite a number of potentially destabilizing political and economic tensions.

 

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