The pandemic has forced consumers globally to switch in mass to E-commerce platforms and has caused the logistics industry to accommodate the surge of demands of warehouses all over. According to JLL’s Asia Pacific logistics and industrial market insights, the y-o-y rental growth rate in the APAC industrial estates is recorded at 2.8% in Q3 of 2021 is rising faster than the previous quarter of 1.7%. Nonetheless, more developed markets are showing even higher growths with the average rents rising up to 3.2% reflecting a more competitive leasing market with low vacancy profile.
Looking closer at the APAC industrial property investments, Edgeprop’s article on Asia Pacific real estate deal stated that interest for quality industrial properties remains strong especially with logistics and data centres. Meanwhile, JLL Malaysia’s property market monitor has shown that the logistics segment is the only segment that is experiencing growth in rental rates at 1.1% semi-annually despite its low gross rent. Based on theSundaily news, Savills Malaysia group managing director said that the pandemic in 2022 is not easing up and as more e-commerce companies are adopting omnichannel methods to reach their customers, thus the demand for warehousing has also significantly increased as the economic sector is expected to remain unchanged.