Increased investment into logistics and industrial real estate will continue as investors seek to diversify portfolios into this asset class. Accelerating e-commerce, an increasing middle class, and rapid urbanisation are propelling the demand for logistics and industrial growth. Investors and owners need creative approaches to succeed in an increasingly competitive marketplace. More demanding consumers are necessitating modern logistics hubs with sustainability, technology and robotics as the new standard.
Capital deployment in the sector will double within the next three-to-five years to AUD$70-80 billion.
Investors need to realign their logistics strategies
Traditional investment approaches are being challenged and investors need new strategies to drive returns and reduce risk.
Recalibrate your asset and capital strategies
Mitigate risk and generate greater returns
Build resilience to withstand future unknowns
Is it time to consider sale and leaseback strategies?
Competitive markets require more creative investment strategies such as joint ventures, re-capitalisations and platform investments and sale and leaseback strategies. Additionally, there is potential for more sale and leaseback transactions in the sector across Asia Pacific. Many owner occupiers are exploring this option to free up capex to upgrade facilities and implement new technological solutions into warehousing and supply chain management.
Is it time to consider how you diversify your portfolio and increase your exposure to logistics?
Increasingly, institutional capital is hunting for opportunity in logistics and industrial assets due to its accelerating growth trajectory. However, many investors are finding entry or expansion into the sector a challenging prospect given that favourable demographics and prospects of greater consumption are creating a mismatch between available supply and surging demand for assets.
Is it time to repurpose your assets to modern logistics hubs that remain relevant in a competitive market?
Given the accelerated shift in occupier expectations, investors will need to repurpose existing assets to build resilience across their portfolio and drive performance. More demanding consumers are necessitating modern logistics hubs with sustainability, technology and last-mile capability as the new standard.
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Assessing Last Mile Logistics in AustraliaWhat strategies are being used to manage warehousing requirements in Australian Logistics? To better approach 'last-mile' warehousing, research has been conducted on large and small scale delivery groups, analysing models that provide better outcomes for retailers across the size spectrum. Moreover, our report answers the key questions around Australia's urban logistics players and how, in these ever-changing climates, retailers have continued to innovate and adapt to new strategies.
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Australian Industrial Market Overview 3Q21Activity in Australia’s logistics and industrial sector has remained at or near record highs across both the occupier and investment markets. Gross take-up exceeded 1.1 million sqm for the third consecutive quarter, bringing the YTD total above the previous full-year record. Development activity has so far been unable to keep up, with construction activity heavily impacted by COVID-19 lockdowns in Sydney and Melbourne weighing on completions this quarter. This has placed increasing pressure on prime rental rates, which increased at the fastest rate in over 15 years. Dive into the 3Q21 statistics on the national Australia Industrial markets.
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PODCAST: The true cost of fast deliveriesThe rising demand for fast, efficient deliveries over the past year has become tied up in the growing urgency around sustainability. With growing awareness of the trade-off between fast deliveries and carbon emissions, what can companies, investors, governments and consumers do about it?
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