Research - JUNE 23, 2022

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Prolonged supply chain disruption to accelerate Southeast Asian logistics real estate demand

by Andrea Zander

Pandemic-related border controls, Mainland China’s zero-COVID policy, the rising cost of global shipping and higher energy prices will continue to pressure Southeast Asian supply chains in 2022, according to CBRE Research in its June 2022 report.

Despite experiencing considerable disruption since the onset of the pandemic, CBRE expects Southeast Asia to be among the major beneficiaries of a drive among manufacturers and distributors to strengthen supply chain resilience.

At the core of this strategy is overhauling inventory models. Over the past two years, manufacturers, omnichannel retailers and logistics companies in Southeast Asia have shifted from a "just-in-time" inventory approach to a "just-in-case" model, which requires them to keep large volumes of stock on hand to serve as a buffer to potential disruption. As supply chain operations gradually normalize, occupiers will seek to achieve a balance between these two inventory strategies while focusing on invento

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