Realogis-RLI Group predicts massive capital reallocation of institutional capital in favor of logistics properties

German industrial, warehouse and logistics property specialist Realogis-RLI Group is expecting institutional real estate investors to massively reallocate capital to logistics properties, post coronavirus.

In the United States, 30 percent of institutional capital is currently invested in the industrial sector, and this figure has been rising for decades. The majority is attributable to logistics. According to the Realogis-RLI Group, logistics properties currently account for almost 15 percent of allocated capital in Germany, compared with 7 percent over 10 years ago.

“In the next 10 years, the high-end logistics sector in Germany will see capital allocations of between 30 percent and 50 percent among institutional investors,” said Umut Ertan, founder and partner in the Realogis-RLI Group. “Residential and logistics are the most crisis-resistant asset classes within the property sector as a whole. Looking at commercial property alone, logistics is the most crisis-