Logistics real estate investment

More investors are turning to logistics for their next commercial real estate investment. COVID-19 has meant logistics and distribution centres have been promoted to essential services, and landlords’ demand for these industrial tenants is sky-rocketing.

In a survey of investors managing over $1.5 trillion in funds, 81% said they plan to increase their investment into logistics by the end of 2021. Logistics centres cater to expanding Australian populations, delivering goods purchased on online stores and groceries. It is a growing investment sector which, in the time of a pandemic, is providing high yields and opportunities for capital growth.

Global and local investors favour logistics investments in Australia for good reason:

• Lease agreements tend to be longer for logistics tenants. This promises continued income for investors and financial stability.
• Strong yields from logistics and industrial real estate investments create a cashflow positive environment for investors.
• Tenants are creating a secure property investment environment, with the increased demand for online shopping and the distribution of goods meaning logistics companies are more relevant than ever.
• High land-to-building ratios means industrial property investors can benefit more from appreciating land values and are less impacted by depreciating building values.
• The strength of logistics tenants has made industrial real estate investment the most resilient sector during COVID-19.

At Properties & Pathways, we take an interest in every investment, and share our expertise and rewards with each investor.