70: Real assets: Urban logistics has made the industrial sector exciting again


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E-commerce has changed the way we shop in a rapid space of time, growing at an annual average of 17% according to ONS calculations. But our demand for quick, reliable delivery has driven up the demand for logistics-capable properties closer to urban centres and this has reinvigorated the once ‘steady and dull’ industrial real assets sector. Prologis estimates that e-commerce logistics requires three times the floorspace of conventional logistics – a clear opportunity for investors’ capital.
But investors piling into the urban logistics trend risk overpaying. A careful consideration of both macro location (growing populations, supportive density, and improving consumer spending) and micro location (which side of the low-emission zone will be best for business?) is key for performance.
Our conversation this week dives into the ways this investment theme has developed over the years, why it’s likely to keep growing and also the risks investors should consider before going in guns blazing.
· Bill Page, Business Space Research Manager, Real Assets
· Tim Packer, Assistant Fund Manager, Real Assets
· Mark Chappel, Senior Content Manager
We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the guests or types of content you’d like to see covered.
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76 episodes