Asia Pacific logistics sector maturing as investors and occupiers reimagine strategies

Investors and occupiers are reimagining logistics strategies in Asia Pacific to take advantage of ongoing structural shifts in the sector’s real estate landscape. According to JLL, increasing capital allocation into the sector, the shift toward ecommerce accelerated by the COVID-19 pandemic, and strong exposure to fast-growth industries, have rapidly shifted how logistics real estate functions and operates, with implications for both owners and occupiers of this asset class.

Across Asia Pacific, COVID-19 has influenced both investment flow and leasing demand. Uncertainty around underwriting assumptions — including rent and vacancy forecasts, costs of capital, travel restrictions and lack of pricing visibility — has limited volumes in first half 2020, declining by 32 percent year-on-year. Despite these headwinds, investor sentiment toward the Asia Pacific logistics sector remains positive.

“Logistics remain firmly on the radar of investors and, although a moder