Demand remains strong for ‘the right’ logistics buildings

Demand for logistics buildings remains strong as long as you have well-located, high quality buildings according to Ingo Steves, managing partner, logistics, Swiss Life Asset Managers.

“We see a lot of demand for our buildings and we have the equity position to be speculative in the market,” he told Real Asset Insight’s Richard Betts.

He added that obtaining building permits very quickly and developing just in time to meet customer needs makes it possible to find the right customer for the building.

Rental growth also remains strong in some markets, Steves added, and in the US market can be as high as 30% in New Jersey and Chicago, also in London Market and Paris. “If you have the right product in place we see a lot of rental growth.”

Headline rents are growing but sometimes incentives are needed, such as rent-free periods are becoming necessary, he added.

Please click on the video above to watch the full interview or listen to the podcast below.