Sass J-Baleh, Head of Industrial and Logistics Research at CBRE, joins me to talk about the logistics and warehouse real estate market:
- Similarities between the Australian logistics real estate market and global logistics real estate
- Factors driving growth in logistics and warehouse real estate
- The Australian logistics property sector:
- Development and investment activity
- Occupier demand and rental growth
- Current and forecast vacancy rates
- Sectors driving growth in demand for logistics space:
- Online grocery - omnichannel driving demand
- Transport, postal and warehousing
- Amazon driving demand
- Location and size of logistics sites
- Inventory and demand planning
- The need for speed
- Options for last mile logistics sites - outside traditional logistics precincts, and even in shopping centres
- Other factors squeezing the logistics and distribution real estate market - including the food and beverages sector, and population growth
- Can real estate supply meet long-term demand?
- Forecast for the logistics property sector, including:
- Re-shoring of manufacturing
- Reassessment of optimum inventory levels
- Transport costs and last mile efficiency
- E-commerce returns and reverse logistics - impact on future demand for floorspace
