The industrial sector remains one of the most compelling markets in global real estate, but the drivers of success in the sector have evolved. After the structural surge fuelled by a pandemic-era demand boom and supply constraints, the market entered a phase of normalisation, marked by softer rent growth and a decisive cap rate reset. Now, performance is increasingly dispersed across markets, assets and tenancy profiles. As broad beta becomes harder to capture, the sources of performance are becoming more idiosyncratic, driven by local insight, disciplined market and asset selection, and operational execution.
Global perspective: Selectivity is key
Investors can be confident in industrial real estate fundamentals. However, as performance is increasingly dispersed, selectivity is critical and should be underpinned by a deep understanding of subsector demand drivers and location-specific dynamics, as well as tenant profiles and requirements.
Dema
