Will the relationship between online retail sales and warehouse construction — which has long been a strong indicator of the direction of the logistics real estate market — continue?
New research on the U.K. market from CoStar suggests that while continued growth in online sales points to a meaningful source of future warehouse demand, translating that demand into new development is likely to be more measured than in the past few years as the period following the COVID-19 crisis has highlighted the risks of development activity outpacing demand during periods of exceptional disruption.
The relationship between online retail sales and warehouse construction has long been a useful indicator of the direction of the logistics real estate market. From 2012 to 2019, online sales as a share of total retail spending rose steadily, while warehouse construction orders followed a similar trajectory. Both series then accelerated sharply during 2020 and 2021 as the COVID-19 cri
