Subscribe to our free, weekly email newsletter!



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 Patrick Burnson, Executive Editor
June 25, 2013

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

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Second quarter revenue for transportation and logistics titan UPS headed up 5.6 percent annually at $14.3 billion, while operating profit sank 57.1 percent to $747 million. Quarterly net income fell 57.6 percent to $454 million.

Panjiva, an online search engine with detailed information on global suppliers and manufacturers, recently said it is opening up the “vault,” so to speak. The vault in this case is making its copious amount of trade data accessible through an Application Programming Interface (API), which enables customers to extract Panjiva’s trade data into their own database.

Freight transportation and logistics services provider Averitt Express recently announced it has rolled out improved transit times for less-than-truckload (LTL) service from the Midwest to Toronto and other cities.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Anne Ferro, a ferocious advocate for greater truck safety and a constant thorn to truck drivers and some unsafe trucking fleets, says she is leaving as administrator of the Federal Motor Carrier Safety Administration. No successor has been immediately named.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA