A confluence of economic and geopolitical trends is changing global supply chains and driving increased demand for industrial and logistics real estate in Southeast Asia, according to industry leaders at ULI Asia Pacific’s REImagine conference.
The COVID-19 pandemic made 2021 a historic year for the shipping and logistics industry, as rising e-commerce sent large retailers and general merchandisers scrambling for warehouse space to hold their inventory, supply-chain issues delayed shipments, real estate developers strained to keep up with demand, and local governments struggled to issue permits quickly with employees working from home.
With features such as mezzanine offices above warehouse spaces and shared-amenity areas in which people can exercise and socialize, developers are transforming the once-staid genre of industrial buildings by incorporating features comparable to those typically found in office and mixed-use projects, according to a recent ULI panel discussion. Panelists also described design changes made to facilitate the increasingly rapid movement of e-commerce goods and rooftop solar installations that can supply most of a building’s energy needs.
ULI MEMBER–ONLY CONTENT: The dramatic increase in online shopping in the United States has only further increased the appetite for properties close to population centers.
U.S. real estate economists predict generally improved economic and property market news for the rest of 2020, as well as for the following two years, compared with their forecasts of six months ago, according to the fall 2020 ULI Real Estate Economic Forecast.
Global growth in e-commerce spurred by the coronavirus pandemic is boosting investor interest in a “new economy” asset class dominated by data centers and logistics facilities, speakers said in early September at a session during the ULI Asia Pacific REImagine conference.
A recent ULI Europe webinar looked at the “new normal” for urban logistics including the possibilities of drone delivery and how a downturn and changes in regulation could free up more locations in central business districts.
The Punggol Digital District, set to launch in 2023, will form a fresh nexus between higher education and industrial innovation, with its two anchor institutions being the Singapore Institute of Technology and a new business park developed by JTC Corporation, an industrial property developer and manager.
Developers are under more pressure than ever to include features in their buildings that are good for the environment, good for their workers, and good for the surrounding community, said experts speaking at the ULI Fall Meeting.
Demand from growing cloud-computing providers has set the U.S. data center market on pace to break 2017’s record leasing activity, according to CBRE’s latest U.S. Data Center Trends Report. Northern Virginia and Phoenix are also seeing significant new construction to meet demand.