Four Global Trends Impacting Logistics!

Four Global Trends Impacting Logistics!

 

Logistics company Prologis has analyzed the factors influencing logistics real estate and identifies four key areas that will have a significant impact.

The first trend is a decrease in volatility, attributed to the multiplier effect on demand and structural discipline in supply. The demand for logistics has increased due to greater economic activity. Each unit of growth now requires 20% more logistics compared to before the pandemic.

There are several reasons for this. Suppliers, wholesalers, distributors, and retailers aim to avoid disruptions in the supply chain, resulting in an additional 5% in inventory carry. The variety of products has increased as vendors target specific customer segments, leading to a greater need for storage space. Demographic changes contribute to a higher share of goods consumption, requiring more storage and processing space. In addition, online sales continue to gain a larger share of retail sales, necessitating three times the amount of logistics space compared to brick-and-mortar stores.

The next significant factor is the transformation of retail that drives demand. E-commerce, in particular, requires extensive logistics support. Speedy delivery times, such as same-day or one-day delivery, provide a competitive advantage globally. To achieve this, larger decentralized distribution networks are necessary to ensure fast delivery and reduced transportation costs.

The need for supply chain resilience also impacts logistics. Prologis describes a shift from just-in-time to just-in-case inventory management. The pandemic exposed the risks of overly tight supply chains, leading to inflationary pressures. To manage diversification of sources, duplicated facilities are required.

Lastly, there is an anticipated decline in new industry building deliveries, projected to decrease by 35% or more in the U.S. and EU by 2024. This decrease, coupled with higher replacement costs and limited access to affordable financing, will tighten demand and vacancy rates.

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If you are in need of an experienced commercial real estate broker I can be reached at 281-222-0433, or you can visit here to schedule a consultation: https://calendly.com/vikingenterprise

https://www.houstonrealestatebrokerage.com/

https://houstoncommercialmortgage.com/

https://www.houstonrealestatebrokerage.com/

https://houstoncommercialmortgage.com/

https://www.tenantbase.com/advisors/bill-rapp/

https://www.billrapponline.com/

https://findamortgagebroker.com/Profile/WilliamRappJr28883

https://doctorvideo.billrapponline.com/

https://veteransvideo.billrapponline.com/

https://mortgageviking.billrapponline.com/

https://fha203h.billrapponline.com/

https://renovationvideo.billrapponline.com/

#Commercial Real Estate Broker #Commercial Leasing #Commercial Lending #Structured Finance #Commercial Sales #Commercial Real Estate Investment #Commercial Real Estate Development #eXp Commercial – Viking Enterprise Team #Agent Attraction