Improving confidence among logistics occupiers detected by the recently published Savills/Tritax logistics census is also starting to be reflected by statistics from the sector according to Tritax Eurobox CEO Phil Redding.
Occupiers are in the process of building their e-commerce presence, increasing supply chain resilience and reducing their environmental impact.
“These are long-term issues that occupiers are trying to solve. It will take quite a long time to actually solve all of these and I think that does underpin the sector with a level of demand and occupiers showing confidence that they still want to go ahead,” Redding told Real Asset Insight’s Richard Betts.
Although the survey showed that there is a slight reduction in the numbers of occupiers wishing to build stock closer to end consumers there is more diversification of supply chains and nearshoring and other solutions are also expected to have a role in increasing supply chain resilience.
While investors have been through a challenging period, particularly given the level of uncertainty and rising interest rates Redding said that as asset pricing becomes clearer and interest rates begin to stabilise, confidence will return. “What they will be looking at then, are the fundamentals of the logistics and industrial sector which remain very strong and attractive,” Redding said.