Global Logistics Demand Remains Strong, by JLL
Corporate occupier demand for logistics facilities is rising worldwide, reports JLL’s inaugural “Global Logistics Sentiment Survey,” which was released earlier this month. The survey reflects the opinions of 570 JLL market experts worldwide, who note that demand increased in the last half of 2013 and predict that it will continue to increase in the first six months of this year. Survey results indicate that demand is widespread and strong in many markets, especially larger ones near key population centers—and that “investor demand for leased Class A logistics buildings is exceptionally strong.”
Respondents predict that the amount of available logistics supply is declining in EMEA (Europe, the Middle East and Africa) and the Americas but rising in Asia Pacific. They believe that net effective rents are rising across the Americas and that rental growth will spread to more markets in EMEA and Asia Pacific in the next six months. With investor demand expected to remain strong across all regions and the stock of investment product in short supply, further cap rate compression also is expected. “Lower yields (cap rates) combined with rising rents will support logistics capital value growth in each global region,” the survey concludes.
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