Executive Briefings

Logistics Property Values Expected to Peak in 2016

Though the U.S. logistics industry has recovered unexpectedly well from the last recession, reaching record highs in occupancy and absorption, experts believe the growth in property rents and values will peak sometime this year.

Logistics Property Values Expected to Peak in 2016

The improvement in the logistics property sector was tied to the simultaneous recovery of the global economy and increased demand for space created by e-commerce companies, who this year expect to see a 23-percent increase in sales, according to a recent report from commercial real estate services firm CBRE. Global online sales will grow to $3.5tr by 2019, the company said, pushing demand for industrial properties toward mid-sized and big-box distribution centers located close to major population centers.

“E-commerce is a game changer, and its impact goes well beyond the retail sector,” said Richard Barkham, CBRE’s global chief economist, in the report.

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The improvement in the logistics property sector was tied to the simultaneous recovery of the global economy and increased demand for space created by e-commerce companies, who this year expect to see a 23-percent increase in sales, according to a recent report from commercial real estate services firm CBRE. Global online sales will grow to $3.5tr by 2019, the company said, pushing demand for industrial properties toward mid-sized and big-box distribution centers located close to major population centers.

“E-commerce is a game changer, and its impact goes well beyond the retail sector,” said Richard Barkham, CBRE’s global chief economist, in the report.

Read Full Article

Logistics Property Values Expected to Peak in 2016