China’s logistics property segment is expected to recover faster than other property types, as more and more investors fundraise capital to invest in the segment, showing the logistics warehousing market has not been materially impacted by COVID-19.
“We expect logistics to be the first sector to recover among all commercial real-estate sectors,” said Sylvia Xue, associate director at CBRE China Research, to the South China Morning Post.
Demand for last-mile logistics continues to grow, along with the expansion of e-commerce and omnichannel retail. The increased use of e-commerce will require newer larger warehouse spaces and higher efficiency for faster deliveries, and upgrades from lower spec warehouses and factories will boost the sector. In North America, many investors have acquired and then converted underperforming retail assets into warehouses or distribution centers for last-mile logistics – a strategy that could potentially be applied to Pacif
