The industrial and logistics real estate sector includes property types such as manufacturing facilities, fulfillment centers, small or big-box warehouses, last mile logistics, and self-storage. Often, facilities are organized in logistics hubs around seaports, airports, and major highways. Last mile distribution refers to the final step of the delivery process, which means locating it as close to the customer as possible is crucial. Because they vary widely in their use, industrial and logistics facilities are often built to suit the need of the specific operation, with varying levels of automation.
As the sector grows to support the rise of e-commerce and the need for resilient supply chains closer to the end-consumer, there has been a boost in speculative development, or development projects without a commitment to a buyer or occupier. Because of its potential to reduce costs and increase efficiency, automation is becoming increasingly important for the sector.
Industrial and logistics real estate investment in Europe in 2023, by country (in million euros)
Further details: Visit original statistic Industrial and logistics real estate investment in Europe in 2023, by country (in million euros)
The UK, Germany, and France make up the majority of industrial and logistics real estate investment in Europe. The recent growth of the sector has been fueled by the e-commerce market and the increased importance of safeguarding supply chains following the COVID-19 pandemic. Nevertheless, geopolitical tensions, slower economic growth, and higher interest rates have resulted in a decline in investment in the sector.
Industrial and logistic real estate in the UKAnnual asking rent per square foot of industrial big-box property in the United States from 2013 to 1st half 2023 (in U.S. dollars)
Rental costs across industrial and logistic properties vary widely across countries and regions but the overall high demand in the recent years keeps rental costs growing. In North America, the average asking rent for big box properties has increased year-on-year since 2012. Among the most expensive markets are Northern Central (NJ), Inland Empire (CA), and Houston (TX).
Existing big-box space size in North AmericaLeading self-storage REITs in the United States from 2019 to 2023, by market cap (in billion U.S. dollars)
Further details: Visit original statistic Leading self-storage REITs in the United States from 2019 to 2023, by market cap (in billion U.S. dollars)
Self-storage facilities are a solution for both private individuals and businesses that need more storage capacity or a temporary place to store furniture, equipment, or business items. Public Storage is the biggest U.S. self-storage operators by market cap. The company operates globally, including seven European countries.
Leading UK self-storage brands
Industrial real estate includes any real estate used for manufacturing, storage, distribution, or other special function. Industrial properties are diverse in size and can exceed 100,000 square feet. Often, they feature mixed-zone buildings with offices and other commercial spaces. Because industrial buildings are highly specialized, they are subject to long-term leases.
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