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Costs are rising, but logistics investors will be compensated

Costs are rising in all real estate sectors but logistics investors find themselves in a more favourable position, Marcus de Minckwitz, Head of EMEA Industrial & Logistics, Savills, told Real Asset Insight.

 

“For all of these heaadwinds, rising costs, increased lead times, you still have the ability as a logistics investors to pass these costs on to your tenant”, he said. “Rental growth is still very real and live in the logistics market and there are many signals that it will continue”.

 

Logistics stands out favourably among asset classes, because in other sectors like offices or retail it is much harder to pass costs on.

 

“We have a very diverse occupier base, we have proportionately lower costs to the occupier compared to transport or labour costs, so if you look at it from an investment point of view, it is true that costs are rising and risks are increasing, but they will be paid for”, de Minckwitz said. “Logistics investors will be compensated”.

Please click on the video above to watch the full interview.

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