Logistics drives demand for industrial real estate

The report suggests that owners, occupiers and investors need to respond to unprecedented trends in technology, demographics and infrastructure that are transforming global supply chains across the retail, industrial and logistics real estate sectors

By ·

Cushman & Wakefield has released a comprehensive white paper entitled “The Changing World of Trade” that indentifies winning strategies for adapting to the new “demand economy.”

The report suggests that owners, occupiers and investors need to respond to unprecedented trends in technology, demographics and infrastructure that are transforming global supply chains across the retail, industrial and logistics real estate sectors.

Company spokesmen said that their expectation is that as the global recovery gains momentum the significant pent-up demand will result in significant growth in global trade. A projected return by 2014 to the long-term trade growth trend of roughly 9.5% per year could result in global trade flows reaching $45 trillion by 2021 compared to just $6.5 trillion in 2001 when China joined the World Trade Organization.

“In major markets around the world, countries are positioning themselves to capitalize on the growth in international trade by investing heavily in infrastructure improvements such as ports, airports, highways, railways, industrial parks and most importantly intermodal hubs,” said Maria Sicola, executive managing director and head of Cushman & Wakefield’s Research in the Americas.  “Meanwhile, governments are focused on negotiating new trade agreements and easing foreign direct investment regulations.”

The retail sector today is undergoing rapid change, as it becomes more global, urban and specialized due to the rapid rise of online shopping, mobile technology and changes in consumer spending patterns. The effects of customer demand on real estate include changing location strategies and increasing investments in reducing operating expenses. To meet the demands being driven by e-commerce, technology and transportation costs, companies are actively streamlining their fulfillment processes – improving logistics to maximize efficiencies in inventory, service time and delivery – which is driving demand for high-quality space.

John Morris, Cushman & Wakefield’s Industrial Services Lead, Americas, perhaps said it best:

“Seismic changes in retail requirements are putting new pressures on shippers who are expanding to developing economies while concurrently struggling to adapt to the challenges of high-demand retailing in increasingly dense cities.”


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Six Ways Cloud ERP Supports Rapid Innovation
Kenandy is a new approach to ERP that lets you and your team focus on driving innovation, creating new product lines, and expanding your customer base even as you improve your business operations.
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Best Practices: How to Efficiently Leverage APIs to Increase Your Net Income
Both legacy and modern technology leaders agree that leveraging API connectivity is critical in keeping up with the pace of a world that demands not only speed and agility, but also a deep level of visibility. During this session a panel of technology and industry experts discuss impact APIs can have on annual net income and market capitalization.
Register Today!
EDITORS' PICKS
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...

Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...