In 2019 Santos Knight Frank predicted that the industrial and logistics real estate sector will be the next battleground of developers. The unprecedented impact of COVID-19 has accelerated the demand for this sector in real estate further than anticipated.
The viability of this real estate segment proves to be undeniable with the increasing demand for warehousing, cold storage, distribution centers and the likes. driven by e-commerce. The lockdown in the country brought by COVID-19 has forced consumers to adapt and grow more comfortable with e-commerce platforms as part of their daily lives.
Over in 2020 we have seen real estate assets become repurposed. Previous commercial spaces were converted to storage and warehousing facilities. Furthermore, landlords offered competitive rates to gain market share of the growing demand. We think some of the repurposing is temporary given that in the long term, the asset will always be a function of land value.
As such in 2021, we expect a strong and healthy growth in the industrial and logistics segment. This industry is vital in the nationwide rollout of the vaccine against COVID-19. We can expect for the capital market for this industry segment to become more sophisticated. Venture capitalists and investment firms have placed this industry high on their list. In December 2020, CVC Capital announced their partnership with one of the largest logistics companies in our country, Fast Group. The said partnership shows the global readiness of the asset type to be top on of mind when investing in real estate.
How has COVID-19 disrupted the logistics industry? Martin Cu, Country Head of Ninja Van, shares how they were able to operate with the demand amid the pandemic.How has COVID-19 disrupted the logistics industry? Martin Cu, Country Head of Ninja Van, shares how they were able to operate with the demand amid the pandemic.
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