Craig Smith
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 →
2020 Napier & Blakeley Construction Costs Datacards
Napier & Blakeley have provided cost advice to all sectors of the construction and development industries for over 35 years and are pleased to provide our updated Construction Costs Datacards:
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