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Global Investors Add Industrial to Portfolios, Structural Changes Transform Supply Chains
Increased investment in the logistics real estate sector is being driven by strong investor appetite fueled by e-commerce growth and demand for last-mile logistics, according to the latest research from CBRE. Combined with an abundance of institutional capital in the global market, that trend is expected to continue in 2018.
Strong interest in prime logistics assets continues in most global industrial hubs, with $85.8 billion in total investment volume in the first three quarters of 2017, an increase of 12% year-over-year. This has led to widespread yield compression, with 46 of the 64 global markets tracked by CBRE recording a decrease in prime yields since Q3 2016.
Overall, the prime logistics sector is performing well in the Americas, EMEA and Asia Pacific, supporting a healthy capital investment environment with steady yield compression in most industrial hubs. The logistics sector continues to be impacted by structural changes, such as online retailing, that have transformed global supply chains.
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