Why urban industrial and logistics will be a ‘haven’ for investors in 2023

Savills said the sector will see “robust occupier demand.”

Investors looking to invest in real estate must look into higher-quality industrial and logistics buildings in urban settings, according to Savills.

“With a low level of modern logistics stock and substantial growth in the e-commerce sector, most Asian markets have a structural deficit in warehousing and logistics space,” Savills said.

“The underlying secular themes are therefore strong, and income is stable. But investors still need to be picky on location and quality,” Savills added.

Here’s more from Savills: 

The standard distribution logistics sector proved its resilience at the height of the pandemic. It fulfilled its supply mandate superbly and is expected to continue its
strong performance despite the current challenging economic environment.

Substantial structural supply and demand imbalances will create market resilience, complemented by the potential for value enhancement, which should cushion
cyclical risks very well.

The "Urban Logistics & Light Industrial" sector will benefit more than most, adding to opportunities in income-resilient sectors such as housing, big-box logistics and food retail.