Real Estate

Real Estate House View 2021: Logistics Outlook

By Andrew Quade
Head of Logistics - Investment and Development Management, Office & Logistics - Real Estate Sydney, Australia
The explosion of e-commerce. Governments responded to COVID-19 by urging people to stay at home and restricting movement, which disrupted traditional retail and supply chains. The logistics sector stands to benefit from both of these situations: e-commerce has escalated, benefiting the logistics sector over retail, while retailers evaluated the resilience of their supply chains and capacity to serve their customers. This trend was quickly observed and bought into by investors: it’s the acceleration of a longer-term thematic. As we enter 2021 with a lot of capital chasing a small sector, being selective is key. Attractive logistics assets include those strategically placed near customers and in areas which are highly populated with high spending. For a defensive long-term play, investors can mitigate valuation risk by focusing on areas with scarce land which means a higher underlying land value for assets compared to the alternate traditional sectors.
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Important notes

While every care has been taken in the preparation of this video, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This video has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided.

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