Global Logistics Sentiment Survey 2016

2015 proved to be another banner year for activity in many logistics markets around the world.

What changes will 2016 hold?

In our second annual Global Logistics Sentiment Survey, JLL’s industrial real estate and supply chain market experts forecast leasing and investment trends for the year.

JLL found that demand for logistics facilities is expected to remain intact on a global basis in 2016, with rental growth expected to continue throughout all global markets in 2016 and 2017.

Some of the key takeaways of the survey included:

• available supply is expected to contract with new development adding more Class A product to the market, with demand continuing to exceed supply for sophisticated global real estate investment;
• rent growth is expected to continue, specifically in the EMEA and Asia Pacific regions, with more than half of respondents from the Americas predicting rents will peak in their region in late 2016;
• investor demand is expected to remain high, while demand for global logistics real estate fell from 74 percent in 2014 to 57 in this survey, which JLL said, while down, is not insignificant in terms of investor attraction in the sector, and it added that demand in the Americas did not change in 2015 and demand dropped significantly in EMEA and Asia-Pacific;
• prime investment opportunities are expected to be strong in first half of 2016 even though logistics real estate for investment remains tight globally and respondents expect more properties to become available in the next six months with sellers looking to capitalize on high market values; and
• industrial and logistics real estate values will head up at a moderate pace, with cap rates falling more than rising in most markets, especially in EMEA, and rising rents and improving market fundamentals expected to drive market growth going forward.