Demand for logistics assets increases globally

Investors the world over have been clamoring to add more prime industrial assets to their portfolios, with global investment volume in the sector having reached $85.8 billion through third quarter 2017, a 12 percent increase over the same period last year, according to CBRE Research.

The sheer amount of available capital, combined with e-commerce growth and demand for last-mile logistics, has been fueling the sector’s attractiveness to investors, according to the report. This is also in line with the results from CBRE’s most recent Investor Intentions Survey, which found more than a third of investors consider the logistics sector as the most attractive sector, compared with 28 percent for multifamily and 18 percent for office, a big shift over the findings in 2016, where office assets were preferred by 30 percent of respondents over 20 percent each for industrial and multifamily.

In addition, cross-border investment in the logistics sector continues to gr