Expect big change for logistics space in an economic upturn

A fall in consumer confidence in the e-commerce market has led to a slowdown in occupier demand, although current supply is actually the result of decisions made up to three years ago.

Logistics over-capacity could be absorbed as soon as demand increases again. Logistics will experience the biggest improvement with a return to normality, said independent advisor Raimund Paetzmann.

“In logistics we have not only e-commerce, there’s re-shoring, near-shoring and the German pharmaceutical program which wants additional storage to secure supply,” he said in an interview with Real Asset Insight.

Paetzmann added that although the office sector is difficult at present he believes the sector is not dead and that there will be “normalisation”. There is over-capacity in the sector because when people work from home for two days per week, space will remain under used.