Property Sector Spotlight : Industrial & Logistics
The industrial & logistics property sector became the hot favourite in 2020, outperforming all other property types.
The rise of e-commerce has driven major brands to expand their footprint and therefore leasing activity. Vacancy rates are at all-time lows and major development work is underway to meet demand. Several AREITS are continuing their growth in this asset class and Transaction volumes were up to $3.5 billion in 2020, from $2.3 billion in 2019 – as recently reported.
So, what makes the sector tick? Here are some attributes and advantages of the sector from our perspective.
Construction and development advantages
- Over time construction costs in the sector have been less susceptible to escalation than other asset types. This stability provides greater confidence to Developers when planning their next project.
- The speed of construction enables Developers to receive a return on their investment earlier than most other forms of development.
- Tried and tested construction techniques in the sector generally lead to less variations than other forms of construction.
- There are also tax depreciation benefits available to developers / investors upon project completion. Continue reading
We would like to thank all of our clients for their continuing faith in Napier & Blakeley to deliver our services on the opportunities you created.
Thank you to our suppliers, our friends in professional services, design, construction, agency, legal, accounting and management for collaborating with us and for spreading the word about our work and the value we bring.
The outlook for the year ahead is good and we look forward to contributing further to our shared economic, liveable, and sustainable future through the built environment and to helping clients to make informed decisions by managing cost – risk – return.
Without our people, none of this would have been possible and we want to thank each and every one of them for all their hard work and dedication over the year. Especially for again, rising to the challenge of working with so many restrictions in a continually changing landscape – while also helping to keep everyone safe and well. Continue reading →