Commercial Market Outlook 2021
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Summary
Source:
Carter Jonas
Market:
Industrial & Logistics
Date:
June 2021
Key take aways
- Industrial take-up has been buoyant in recent years as retailers and their third-party logistics partners adapt to growing online demand.
- Demand is being driven by online retailers, including retail chains switching from in-store to online (and closing stores) and parcels carriers, there is a much broader spectrum of firms looking for space. This ranges from manufacturers and engineering firms to medical suppliers.
- Manufacturing has reduced the need for storage and is reliant on these complex supply chains. However, global supply chains have become increasingly long and complex, and it is likely that companies will now re-examine these.
- According to MSCI, average industrial rental values have continuing to rise throughout the last year, although at a slower rate than pre-COVID-19. The year-on-year rate in April 2021 was 3.2%, well above inflation, representing a steady rise from a low point of 1.8% pa in September last year.
