Market fundamentals have shifted over the past 18 months, however, the demand side drivers of the core commercial sectors remain favourable. In this Future Demand Series, we explore the key themes which will underpin future growth in each sector beyond 2021. The first part of the series looks at the industrial and logistics sector.
Occupier demand for warehouse space is currently running at historically high levels, buoyed by the strong macro tailwinds which are supporting demand. The continued growth of e-commerce, demographic changes, shifting consumer expectations and occupiers holding more stock have all played a role in heightened levels of demand for industrial property.
Industrial take-up is expected to reach record highs in 2021 and will remain elevated over the next five years. Demand levels will be led by automation and industry 4.0 technologies which will drive significant tenant commitments in most markets.