//July 23, 2021
//July 23, 2021
With e-commerce fulfillment centers popping up on every corner – likely even in your neighborhood – it’s no surprise that the demand for warehouse space is strong and growing stronger.
According to JLL’s The Future of Global Logistics Real Estate report, released July 21, 74% of survey respondents expect that demand for logistics space (warehousing and supply chain facilities) will continue over the next three years, even when compared with recent elevated levels.
What is needed to unlock further expansion and allow seamless, just-in-time deliveries to continue? JLL’s research highlights two key pressures that need to be addressed – limited land supply and sustainable solutions – and points to the major role technology will play in transforming building design and supply chains.
E-commerce had highest year-on-year growth take-up by any occupier group globally: 16% of 2020 total logistics and industrial leasing in the United States, 22% across Europe and 33% in China.
A limited supply of entitled land for logistics space, with sub-3% vacancies in cities including Toronto, New York, Los Angeles, Milan, Tokyo and Hong Kong. In Germany, China, the Netherlands and Australia, 65% of respondents deemed this as biggest constraint on occupier demand.
Improving energy efficiency is the highest global priority, 73% say.
Europe shows the direction of travel, with 40% saying some occupiers are already taking “significant action” toward sustainability. In Asia Pacific, 47% say “enhancing green/renewable energy generation and use” is high priority. The Americas lag, though, possibly due to a lack of government incentives and regional marginally more inclined to rate human-centric building design as high priority.d