Ep 255: Last mile, logistics and warehouse real estate

Dec 9, 2021

Sass J-Baleh, Head of Industrial and Logistics Research at CBRE, joins me to talk about the logistics and warehouse real estate market:

• Similarities between the Australian logistics real estate market and global logistics real estate
• Factors driving growth in logistics and warehouse real estate
• The Australian logistics property sector:
  • Development and investment activity
  • Occupier demand and rental growth
• Current and forecast vacancy rates
• Sectors driving growth in demand for logistics space:
  • Online grocery - omnichannel driving demand
  • Transport, postal and warehousing
  • Amazon driving demand
• Location and size of logistics sites
  • Inventory and demand planning
  • The need for speed
  • Options for last mile logistics sites - outside traditional logistics precincts, and even in shopping centres
• Other factors squeezing the logistics and distribution real estate market - including the food and beverages sector, and population growth
• Can real estate supply meet long-term demand?
• Forecast for the logistics property sector, including:
  • Re-shoring of manufacturing
  • Reassessment of optimum inventory levels
  • Transport costs and last mile efficiency
• E-commerce returns and reverse logistics - impact on future demand for floorspace