What happened? Entire sectors of the economy are stopped, people are locked in their homes. During this period, logistics comes to the fore and changes its importance. The initial analysis of the changes that await the logistics real estate market is provided by Fabrice Cervoni, top manager of the European representative office of Singapore's logistics giant Global Logistic Properties (GLC). His point of view leads Primaliance.
Today. “Slowing down activity to a halt in certain sectors has a strong impact on our tenants and site management. We are only at the beginning of the crisis, but our teams and partners have been at war for several days, ”said Fabrice Cervoni. He also added that the industry was faced with a completely new situation, the socio-economic impact of which, according to most economists, could be equivalent to the Great Depression.
What is already changing? “Our customers are gradually reorienting their activities towards the distribution of basic goods and, above all, food products. For example, some large distributors concentrate their efforts and teams in warehouses providing product logistics, ”says Fabrice Cervoni.
What in the future? The expert is confident that the new context will determine the dynamics of the development of logistics real estate over several years, and the development of electronic commerce is pushing the industry in the same direction.
“It is very likely that many players will reconsider their participation in the global supply chain and, most likely, abandon short-term strategies, which can be very dangerous in a crisis. To ensure business continuity in the short and long term, priority will be given to increasing the number of warehouses. If this is confirmed, this approach can be extremely beneficial for logistics real estate. I think that in general the crisis will make logistics the most important element of the primary infrastructure of any country, which, again, is positive in the long run for our sector. ”
At the beginning of the year, priorities in commercial real estate, according to Savills analysts, looked like this.