In a testament to the unstoppable growth of logistics real estate, the sector continues to experience unprecedented momentum as demand consistently outpaces supply, even with a surge in new construction projects. The latest quarterly analysis by Proprius reveals remarkable figures, showcasing the resilience and expansion of logistics properties.
In the third quarter of 2023 alone, the market absorbed a staggering 120,000 square meters of new buildings, highlighting the insatiable demand for logistics real estate. The cumulative figures for 2022 reported 250,000 square meters of new leases, while the first nine months of 2023 estimate an absorption of approximately 240,000 square meters of new premises.
A significant portion of this robust demand originates from third-party logistics (3PL) companies, known for their focus on high-end real estate and automation capabilities. These elements contribute to precise and swift delivery times, meeting the evolving needs of the logistics industry. The surge in demand has not only driven a 5% year-on-year increase in rents but has also been influenced by rising construction costs, which have, to some extent, been passed on to rental costs.
Furthermore, the average yield in the logistics real estate market has experienced a notable decline, dropping from the double-digit percentages observed in previous years to a current 7%. This shift reflects a maturing market, where dynamics are evolving to meet the demands of a rapidly growing industry.
As logistics real estate establishes itself as a cornerstone of the market, these trends underscore the sector’s ability to adapt and thrive. The surge in demand from 3PL companies, coupled with increased rents and evolving yields, paints a picture of a dynamic and evolving landscape within the logistics real estate realm.