Property investors seek modern logistics assets

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Global e-commerce growth has driven demand for modern logistics properties, says CBRE. MOHAMED HASSAN/PUBLIC DOMAIN

GLOBALLY, modern logistics properties has become one of the most sought-after asset classes for property investors, according to CBRE, a leading international property consultant.

This is because of the huge increase in demand driven by the growth of e-commerce.

E-commerce retailers need very high specification warehouses to use as fulfilment centres, but developers around the world are struggling to keep up with demand because e-commerce has been growing rapidly.

CBRE Thailand executive director James Pitchon said e-commerce is just taking off in Thailand, currently accounting for only a small percentage of retail sales, but Thai e-commerce is expected to rise rapidly and should reach the levels of more advanced markets where it accounts for 15-18 per cent of total retail sales.

Based on research by CBRE Industrial and Logistics Research global head David Egan on the relationship between online sales and demand for modern logistics property in the US, CBRE estimate that, using a similar ratio to the US market, every billion baht ($31.48 million) of online sales in Thailand will generate 4,000sqm of demand for e-commerce logistics space.

CBRE Thailand Industrial and Logistics team head Adam Bell believes that this year will be the year that demand for modern logistics space in Thailand, especially Bangkok, really takes off. THE NATION (THAILAND)/ANN