The Proptech Connection’s Post

CentrePort Partner Colliers recently released some eye-opening insights on industrial real estate’s impact on the investment market. From leasing to development to investor interest, industrial is reaching record highs.  Typically, industrial accounted for 15-20% of the investment market in the US and Canada and by 2020, had crept up to around 25%. Fast forward to today, and the last three years have seen unprecedented growth! And this is specific to Canada, as the US share for industrial remains at 2020 levels. In Canada, industrial now commands a whopping 50% of the entire investment market, more than doubling its share since 2020. This growth is a testament to multiple trends converging: - Increased global investor interest - Demographic shifts driving investment strategies - Declining investment volume in other asset classes - Lender preference for industrial over housing and office projects The industrial sector's resilience and adaptability are evident, making it an attractive option for savvy investors.

Notwithstanding some near-term challenges and regional differences, Clarion Partners believes industrial real estate will remain a compelling long-term investment opportunity across the EU and the U.S. Read our latest whitepaper to learn more about the nuances between the two markets and what trends are positively impacting logistics demand. #IndustrialRealEstate #Logistics #CRE

Honored to Share: New Report on Manufacturing's Resurgence & Real Estate Implications As a Governor of the NAIOP Research Foundation, I'm thrilled to share our latest report, "Forging the Future: Manufacturing Growth and Its Effects on North American Industrial Markets". This comprehensive study dives deep into the resurgence of domestic manufacturing, driven by government incentives, reshoring, and nearshoring trends. The report offers valuable insights for CRE professionals, highlighting: - Soaring Investment: $400 billion pledged for new manufacturing projects, with high-tech and automotive leading the charge. - Strategic Locations: Secondary/tertiary markets near skilled labor, affordable energy, and ample land are in high demand. - Reshoring's Impact: This trend presents both opportunities and challenges, reshaping supply chains and real estate needs. - The Race for Space: New construction must navigate labor shortages and evolving technologies to meet demand. This research is crucial for our industry as we adapt to this dynamic landscape. I'm grateful for the NAIOP Research Foundation's commitment to providing data-driven insights that guide informed decision-making. Download the full report here: https://lnkd.in/e5dsucSK Let's discuss! Share your thoughts on the manufacturing boom and its implications for CRE in the comments below. #NAIOP #CRE #research #manufacturing #reshoring #nearshoring #thoughtleadership NAIOP Wisconsin Shawn Moura Jennifer LeFurgy, PhD Bennett Gray Newmark P.S. Did you know that onshoring is expected to create 210,000 new jobs and expand US manufacturing space by 6-13% in the next decade? The report explores these impacts in detail!

A recent report from Colliers points to sustained investor interest in European living markets despite challenging macroeconomic environments.   The report identifies strong supply-demand fundamentals that are observable across many European markets, which creates a need for more supply of the right type of product in the right locations.   While a tougher financing environment has created some uncertainty around investment decisions, it has also created notable opportunity for well capitalised market players to capture assets with sound demand fundamentals at discounts.   ActivumSG continues to see ample opportunity in the living sector and has significant dry powder ready for deployment across the select European geographies in which it operates. The firm is actively monitoring situations in markets including the Netherlands, the United Kingdom, Germany, Spain and the Nordics, where there is significant upside to be achieved through applying the firm’s significant experience in executing successful value-add and opportunistic investment plays.

I have the privilege of moderating a roundtable on #industrial and #logistics for the Institutional Real Estate Asia Pacific's community consisting of the following outstanding members (LP/GP/Consultant): Alice Siheng QI, Ivanhoé Cambridge Kian-Sin Toh, AIA Nat Miller, CFA, QuadReal Property Group Nina Hafneh, Brunei Investment Agency Wei Ren Lee, Metro Holdings Limited Connor O'Brien, Slate Asset Management David Tran, Actis Guy Tcheau, Principal Asset Management Hank Hsu, Forest Logistics Properties Jason Lee, AEW Leonie Wilkinson, Brookfield Asset Management Dong Hun Jang, Yulchon LLC Jennifer Molloy, IREI Reno S., IREI Key Highlights: 1. #UnitedStates: The past five-plus years have seen a healthy performance from the industrial/logistics sector given strong underlying fundamentals, new supply coming in, and increased interest rates during the past few years. The question becomes: Will there be stagnation with returns? Past projections that there would be a slowing of the lease-ups and rental growth that supported aggressive underwriting have not come to fruition. The sector is still growing, as onshoring and “nearshoring” are important trends, with trade imports from #Mexico to the #US being greater than trade imports from #China to the US. #Last-mile-logistics for grocery-anchored retail 2. #Australia:  After seeing strong rental increases in the market of approximately 20% per year for the past two years, market rents have visibly slowed in line with the macroeconomic slowdown in the nation. While rent growth has slowed, it has not gone backward, with rent growth of about 5 percent projected per year over the next five years. Strong population growth in Australia underpins the nation’s growing need for logistics space. One trend to watch: is the increasing demand from logistics occupiers focused on light manufacturing (i.e. occupiers add value to products rather than only being a distribution hub). 3. #China: The country is going through a restructuring stage focused on a consumption-driven model to spur its economic growth following the residential real estate credit–backed growth model that proved problematic. Demographics support attractive valuations for China’s logistics sector, with profitable tech startups and electric vehicle companies helping pave the way for the growing importance of the nation’s logistics sector. Engaging local partners and municipal government is key to success. 4. #Vietnam: On a macro level, the country has been one of the biggest beneficiaries of the “China+1” strategy, which has contributed to Vietnam’s rising interest among logistics sector investors. Vietnam has seen triple the foreign direct investment of other ASEAN countries, with manufacturing the biggest winner by far, accounting for about 60-70% of total FDI inflows. With rapid urbanization, the affluent middle class sees 25% ecommerce growth, worth US$20b. The main challenge is being able to acquire land at a reasonable price.

What are the future of logistics real estate? Demand and supply fundamentals, weight of capital, technical advances vs. obsolescence, clean ESG requirements, black swan events on logistics chains, and cost of running logistics all have been discussed during the roundtable. #IREI #Logistics

📊🏠 2023 was marked as a year of resilience and adaptation to the economic challenges, surging interest rates, and geopolitical shifts. #ColliersBelgium presents a comprehensive exploration of 2023 performance trends and insights in three key reports, shedding light on how the industry faced these challenges. 🏢 Belgium and its Regional Trends Report 🏭 Brussels and Key Cities Quarterly Report 🏗️ Industrial & Logistics Report Let our reports guide you through insights into the challenges, performance, and forecasts that define the Belgian real estate landscape. 📈 Research Lead: Olesia Infanti Download the reports on our website ⬇️ #reports #officemarket #logistics #industrial #analysis

INDUSTRIAL REAL ESTATE TRENDS FOR TENANTS: • With demand waning and supply growing, occupiers have a window to negotiate for more favorable lease terms. • Sublease space entering the market has pushed levels higher than pre-pandemic levels. • Emerging markets with lower costs such as labor and real estate are becoming increasingly desirable

The real estate market in the Asia Pacific (APAC) region has shown remarkable resilience and adaptability despite the rapidly changing global landscape. Geopolitical advancements in APAC economies have led to a transformation of the real estate sector, with technology and sustainability integration gaining traction. As the real estate industry around the world catches up with technology-led innovations, there is a shift towards environmentally friendly building practices due to rising carbon emissions. This shift is evident in the updated real estate regulations in the APAC region for 3QFY24. Many APAC countries, such as China, Singapore, Australia and Japan have introduced green infrastructure and technology-integrating guidelines to address this challenge. Further, countries like Australia and Japan have shifted their focus from specialised asset classes, such as data centres and cold storage, to Build-to-Rent asset types. While demand from occupiers has weakened due to tighter liquidity, investors have shown a keen interest in commercial and industrial real estate. Moreover, a new theme of inclusivity and equal housing rights has emerged in economies such as Hong Kong and Japan, which is expected to impact other APAC countries in the coming years. Download the report (exclusive for APREA members): https://lnkd.in/g8wiStjf #APREA #RealAssets #AsiaPacific #Bulletin #Insights #Strategy

Industrial & Logics markets of major countries faced with different situations, influenced by various dynamics. South Korea has suffered oversupply in logistics during the past several years. But as Chinese e-commerce companies such as AliExpress and Temu has recently started to strengthen their business in South Korea, they might shorten the adjustment period in the unbalanced market. #Industrial #Logistics https://lnkd.in/gFnaMdin