You are visiting a page on our global site but we noticed that you are in United States.
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
2021-Global-Logistics8-750x480 2021-Global-Logistics6-hero Large

Insights

Global Logistics Outlook

In this report, we consider some of the key drivers affecting the global logistics market, examine recent market performance, and provide an outlook for the sector in the years to come.

Global Logistics Outlook

Dr. Dominic Brown • 5/17/2021

The COVID-19 pandemic brought the logistics sector abruptly into the global spotlight. With increased attention on the sector, both in 2020 and in the near-term, this report focuses on key drivers for the sector, recent market performance and an outlook for the industry.

Growth drivers

  • At the ground level, ongoing population growth and economic expansion will drive the global middle class almost to double over the next decade. This increased level of consumption, together with the accelerated shift to e-commerce, will fundamentally drive the need for stronger, more resilient and more diverse supply chains. Ongoing development of transport infrastructure will be critical to ensure market connectivity.
  • A shortage of labor in some markets, especially across Europe, together with a sharper focus on Environmental, Social and Governance (ESG) priorities, will force accelerated adoption of technology to bring greater efficiencies and transparency. Similarly, the use of third-party logistics (3PL) operators will continue to grow as they provide corporations with opportunities for greater nimbleness and flexibility in meeting consumer demand. 
  • Geo-politics will continue to shape the global trade environment. Many short-term interim solutions have been put in place to safeguard against recent trade flow disruptions, but complete roll out of new supply chain solutions will take years as corporates weigh opportunities for reshoring and demand/supply drivers.

Leasing Market

  • Industrial markets have proved resilient in 2020, and demand remained robust, despite economic growth figures being amongst the worst on record. Accordingly, industrial/logistics vacancy has remained tight across the world, although this has been due, in part, to limited development supply pipelines.
  • Notwithstanding, rental growth has remained comparatively elusive across the world with less than half of the markets tracked recording growth in 2020 but this varies in and within regions. While this may not be surprising in light of the pandemic, it also reflects the longer-term stagnation in rents, with less than half of the global markets having achieved more than 2.5% rental growth per annum since 2017. However, this is expected to change with increased cost pressures being exerted on landlords; not least of all being higher acquisition costs and increased land taxes and infrastructure charges.  

Outlook

  • Demand drivers highlight gaps in supply chains that can potentially be addressed by the expanded range of logistics asset types. To the extent supply chains connect production to consumption, these gaps can be in the same or across multiple regions. 
  • Structural trends fueling demand over the long-term are also being accelerated by both business and consumer reactions to the pandemic. The investor outlook, therefore, is continued strong capital and income returns, with the latter likely to increase in contribution. 
  • The combination of strong demand and supply chain reconfigurations to enhance efficiencies puts a sharper focus on land availability for new development. This will be a fundamental issue that needs to be addressed for real estate to meet the future needs of the sector. 

Download Full Report to Learn More

 

RELATED INSIGHTS

Industrial Warehouse (image)
Research • Industrial

North American Industrial Outlook

Market fundamentals in the North American industrial sector hit new records in 2021 despite pandemic-driven challenges. What’s the outlook for industrial real estate in 2022-2023?
Carolyn Salzer • 12/2/2021
0821NAMYPortswebcard
Research • Industrial

North American Ports Report

To keep up with this pace of goods coming into the continent, the North American industrial market has absorbed over 217 million square feet (msf) in the first half of 2021 alone, a 94% increase over the first half of 2020.
Carolyn Salzer • 9/1/2021
Logistics Global Podcast (image)
Research • Industrial

Logistics: A U.S. and European Perspective Podcast

As global supply chains continue to be stress tested, the logistics market continues to show resilience and growth.
Rob Hall • 12/9/2020
Industrial Recession Proof Report Web Card Image
Research • Industrial

Industrial: The Recession-Proof Asset Class?

The industrial property segment, known as a top performing asset class, continues to remain resilient despite the challenges COVID-19 and the accompanying economic recession have brought forth.
Jason Tolliver • 9/10/2020
Warehouse forecast
Article • Industrial

ATLANTA - Warehouse Forecast

Despite ample new supply, Atlanta’s vacancy rate will continue to decline and is expected to fall below the 4% mark for the first time in history within the next several months. Continued robust demand for new space coupled with the rising cost of construction will exert strong and prolonged upward pressure on asking rental rates.
Christa DiLalo • 11/18/2021

RELATED INDUSTRIES & SPECIALTIES

Retail, E-Commerce & Logistics
We offer omnichannel solutions to keep you current in an evolving landscape.
Learn More
Logistics & Industrial
In the fast-evolving sector, occupiers and owners benefit from our versatile representation expertise throughout the supply channel.
Learn More
Global Supply Chain
Whether it’s optimizing your network or securing the right facility, we will assist you along the entire continuum of the supply chain.
Learn More

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.

Cushman & Wakefield gebruikt cookies om internetverkeer te analyseren en onze klanten de beste ervaring op deze website te bieden. Sluit het venster om uw toestemming te bevestigen, of ga naar deze pagina voor meer informatie:
Cookie Notice

Akkoord en sluiten