Industrial and logistics real estate - statistics & facts
The industrial and logistics real estate sector has entered the spotlight as megatrends unfold, such as the rise of e-commerce and the growing importance of securing supply chains. The largest logistics hubs are found around major ports connecting the most important trade routes. As one of the busiest container ports in the U.S., handling cargo from the Asia-Pacific region, Northern Europe, Mexico, and Central America, Los Angeles concentrates the most industrial and logistics real estate inventory in the country. On the opposite side of the world, the Asia-Pacific region boasts an extensive network of supply chains, contributing to a growing industrial and logistics real estate sector.
Nearshoring – moving production closer to the customer base - is another trend shifting demand in the industrial and logistics real estate market. Monterrey, Mexico’s second-largest city, has a rapidly growing industrial and logistics sector. Mexico’s strategic geographic location as the U.S. south neighbor and its flourishing automotive sector featuring big names, such as BMW, Ford, General Motors, Honda, and Mercedes, make it an increasingly popular destination for nearshoring. Recently, Tesla announced plans to open a factory outside Monterrey – a move likely to boost regional investment.
Looking ahead, some of the most important industrial real estate themes include automation, decarbonization, and the development of trade relationships between the major geopolitical powers.
Who are the industrial and logistics real estate market leaders?
In the U.S., the San Francisco-headquartered real estate investment trust (REIT) Prologis had the largest market cap in the largest industrial and logistics sector. In 2023, the Prologis owned and managed approximately 1.1 billion square feet of industrial and logistics real estate in major countries worldwide, including the U.S., Canada, Mexico, Brazil, China, Japan, the United Kingdom, France, and Germany. The company’s portfolio features occupiers such as Amazon, Home Depot, Geodis, and DHL. Though with a stronger focus on the APAC region, ESR is another global market leader. In 2022, the company had 156 billion U.S. dollars in assets under management. Coupang, JD.com, and Yang Kee Logistics were just a few of the ESR’s largest tenants.What important trends impact the sector?
Though the APAC region’s importance in global trade is undisputed, the supply chain issues caused by the coronavirus pandemic and the growing tensions between the U.S. and China have led to many companies restructuring their supply chains. Companies such as Nike, Adidas, Samsung, Sony, Apple, and Amazon have relocated production outside China, benefitting the industrial and logistics real estate markets in Vietnam, India, Thailand, and Malaysia.Nearshoring – moving production closer to the customer base - is another trend shifting demand in the industrial and logistics real estate market. Monterrey, Mexico’s second-largest city, has a rapidly growing industrial and logistics sector. Mexico’s strategic geographic location as the U.S. south neighbor and its flourishing automotive sector featuring big names, such as BMW, Ford, General Motors, Honda, and Mercedes, make it an increasingly popular destination for nearshoring. Recently, Tesla announced plans to open a factory outside Monterrey – a move likely to boost regional investment.
Looking ahead, some of the most important industrial real estate themes include automation, decarbonization, and the development of trade relationships between the major geopolitical powers.
