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Supply struggling to keep pace with demand
As a result of the COVID-19 pandemic, we have seen increasing demand for logistics spaces and data centres, fuelled by exponential growth in online shopping.
As a result, there is an undersupply of property to keep up with the market changes.
Retail warehouse parks however, will prove to be resilient to both COVID-19 and internet retailing. Remaining industrial spaces could be repurposed for logistics, residential or life sciences.
Rents are on the increase, and pricing will be driven both by both the weight of investor demand and occupational fundamentals.
Logistics will remain many investors’ sector of choice in 2022.