We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Industrial and logistics segments to lead commercial real estate recovery

Industrial and logistics segments to lead commercial real estate recovery

But it will take years to return to pre-pandemic levels, mid-year real estate market outlook shows.

Industrial, logistics to leader commercial real estate recovery
August 6, 2020
Supply Chain Quarterly Staff
No Comments

Industrial and logistics segments will help lead the recovery in commercial real estate activity following the coronavirus pandemic, but the outlook calls for a long road ahead, according to Los Angeles-based  real estate services and investment firm CBRE.

The firm’s Global Real Estate Market Outlook 2020 Mid-Year Review, released this week, shows that although the rebound for commercial real estate will lag that of the overall economy, a recovery will start this year and continue into 2021. Accelerating e-commerce activity will boost industrial and logistics markets, pushing it ahead of other business sectors, including office, retail, and hotel space. The multifamily housing sector will also lead growth, boosted by demographic trends that favor renting, according to CBRE.

“The blows that the pandemic dealt to the global economy this year were swift and significant, but we’re now set for a strong recovery starting in this year’s second half and extending through 2021,” Richard Barkham, CBRE’s global chief economist and head of Americas research, said in a statement about the report’s findings Wednesday. “Additional rounds of government stimulus are in the works to bolster economies, but let’s be clear, it will take years for commercial real estate activity levels to return fully to pre-pandemic levels. The recession likely will keep interest rates low for several years, which will maintain the flow of capital into commercial real estate. The arrival of a vaccine will greatly accelerate the recovery in real estate, but we can’t bank on that yet.”

The research underscores the importance of accelerating e-commerce activity to the warehousing and logistics sector. The authors wrote that a “surge in e-commerce will solidify industrial and logistics as a top-performing sector of commercial real estate, with modern, class-A, warehouses attracting most of the demand.” Additional demand will be driven by retailers adding more inventory to handle demand fluctuations and manufacturers diversifying their supply chains to reduce their dependence on China.

Although retail will lag industrial and logistics growth, key changes will help transform the way consumers shop, including curbside pickup services, which will become permanent options for many retailers, the researchers wrote.

Logistics Logistics Services
KEYWORDS CBRE
  • Related Articles

    IANA: Intermodal freight slump in second quarter represents “floor” of decline

    As port throughput shrinks, spending slows on container port expansion plans

    Logistics industry growth continues in July

Recent Articles by Supply Chain Quarterly Staff

IoT vendors say industry needs better collaboration

Survey: only 55% of shippers filled their LTL trucks to full capacity in 2022

Survey: consumers set price cap on paying sustainability premium

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Five tips for parcel success in 2023

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing