The dwindling availability of land in urban markets, the growing demand for modern, future-ready logistics spaces and the continuing rise of ecommerce are each factors shaping logistics markets around the globe.

2021 witnessed a surge of logistics investment, earning it the title among some as “the year of logistics”. In light of that influx of capital and development, rental growth and vacancy rates have since moderated in most regions globally. That moderation is taking the form of a return to pre-pandemic levels of transaction volume in many markets, rather than a regression.

In the United States, for example, “a return to normalisation” is occurring, says Daniel McDonald, managing director, head of Asia Pacific logistics operator division, CBRE Investment Management (CBRE IM). Industrial transaction volume in the United States has returned to near pre-pandemic values; the US$22 billion of transactions in the third quarter of 2023 is similar to the US$23.6 b