The property industry loves a rhyme, and for some time the chant has been "beds, sheds and meds", with the middle category highlighting that demand is still red hot for logistics properties. However, following on from the pandemic boom, investors need to work hard to make sure what they're buying offers good value.
Several broad trends work in the sector’s favour. E-commerce is lower than the blistering highs seen during the pandemic, but still significantly higher than before the virus struck. The UK market is stronger than its European neighbours. Nearshoring, another trend exacerbated by the supply chain disruption of the pandemic and war in Ukraine and the Middle East, has helped create yet more demand for warehouse space. In short, while logistics is maturing, it still has plenty of life left. And, the good news for investors is that they can buy into the full spectrum of logistics via public markets.
