No doubt that warehouses can hardly compete with the glitz associated with a prime office address or the glamour of a luxury hotel. Not to mention their functional designs and out-of-town locations, which might deter many investors. Nonetheless, warehouses have become integral parts of the supply chain, and logistics have become one of the most sought after asset class within the Real Estate spectrum.
Looking backwards, fifteen years ago, the Logistics Real Estate sector didn’t exist in a meaningful way in Europe. Times have changed and logistics now account for 11% of commercial property worldwide (Source: European Logistics Handbook 2017-2018). The trend is set to grow further – by around 10% annually according to BNP Paribas Real Estate’s estimates. Case in point, modern logistics space per capita in Europe remains only about one-third of the current level in the US. There is still room to grow…
While their popularity has waxed and waned throughout the centuries, warehouses have been around for hundreds of years. Since primeval times, humans have stored food in periods of plenty to provide nourishment when little is available. Today, warehousing involves a great deal more than the stock-piling of foodstuffs. As civilization has developed, warehousing has become broader, more diverse, more complex. From the Egyptian era to augmented reality and robotics, Jones Lang LaSalle’s Research Team has tracked the journey of the warehouse:
A history of warehousing