Large-scale logistics properties with light industrial properties are in greater demand than ever before. That's hardly surprising. Combining both in one investment portfolio results in good market liquidity as well as good earnings prospects.
Industry and Logistics (I&L) is an important pillar of the economy as it ensures the supply of goods to companies and households. Global trends such as e-commerce and digital transformation have driven a major increase in tenant demand in I&L. The main logistics and light industrial real estate locations include, besides conurbations, specific logistics and production locations in Germany, France, the United Kingdom and Benelux.
Swiss Life Asset Managers views the logistics sector as a liquid investment market, which has, however, been subject to significant earnings compression in recent years. Light industrial property, on the other hand, has established itself as an attractive investment opportunity and provides above-average returns close to business parks and light manufacturing properties.
Swiss Life Asset Managers attributes good market liquidity and good earnings prospects to the combination of logistics and industry. This requires, however, a well-diversified number of tenants from different sectors.