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Logistics real estate market shows no signs of slowing

E-commerce trends, warehouse needs, and sustainability drive logistics real estate demand, JLL report shows.

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Supply Chain Quarterly Staff
By Supply Chain Quarterly StaffJul 23, 2021
Supply Chain Quarterly Staff
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Strong demand for logistics real estate worldwide is expected to continue, according to a recent survey from real estate firm JLL.

JLL conducted its inaugural survey on Global Logistics Real Estate this spring to gauge activity in the market and identify trends that may affect future growth. The company surveyed 720 logistics experts in 43 countries and territories on a range of issues. More than 70% of respondents said they expect demand in the e-commerce sector to “increase significantly” following the highest year-on-year growth by any occupier group globally in 2020: e-commerce accounted for 16% of 2020 total logistics and industrial leasing in the United States, 22% in Europe, and 33% in China, according to the report.

The research also revealed continued strong growth for warehouse facilities, driven by demand for express and parcel delivery, third-party logistics services, healthcare and life sciences, and construction and materials.

Looking ahead, the research identified pressures on future growth, including a limited supply of entitled land for logistics space around the world and the need to satisfy sustainability demands. More than 70% of respondents said improving energy efficiency is the highest global priority, with Europe leading the way in making progress on that goal.
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