Logistics markets back on track but diminished interest in ESG

The logistics real estate market has had a tough time in the capital markets over the last 12 months said Logistics Capital Partners’ managing partner James Markby, but the results of the Savills/Tritax annual occupier census provide a positive picture of occupier sentiment, he said.

“I’m pleased to say that also matches our practical experience.”

Markby was on the Real Asset Media investment briefing panel at which the results of the 2023 logistics occupier census were announced and discussed.

“Decisions that had been previously paused are now back in play and people are at the table either taking leases or putting things under offer in a way that wasn’t there six months ago,” he said.

However, the census did indicate that ESG and buildings’ environmental credentials have slipped down list of priorities.

“I guess I’d be flagging to guard against that. I realise people may have more priority issues like power supply and connectivity to the grid, but I think ESG is the big topic for our generation.”

Markby said both embodied and operational carbon need to be addressed.

After a summer of news dominated by the weather and the environment there is a clear indication of what is needed to insulate communities, families and businesses. “I don’t think there’s a better time to be putting [ESG] right at number one.”