Megatrends: Logistics (2017) | Savills Industrial Vietnam Megatrends: Logistics (2017) | Savills Industrial Vietnam

How will trends in modern life and technology impact logistics real estate?

2007: The year Apple launched the iPhone and ushered in the age of the smartphone along with 10 years of technological growth and change that has impacted all walks of life. In many respects a perfect storm was created as the millennial generation reached adulthood, high-speed data networks proliferated across the globe, active social media users increased drastically, and the rate of urbanisation continued at a pace. Indeed, by 2050, 66% of the global population will live in urban environments, up from 54% today. This will mean another 2.5 billion people globally residing in cities.

Combined, these factors have created the conditions for disruption in many sectors and markets across the world. Brands like Amazon, Uber, Deliveroo, Wayfair, ASOS, Zalando, Ocado, Spotify, Netflix and are creating new markets, increasing their sales and market share whilst “traditional” brands are playing catch-up. Service and choice are the key factors in this new world, a world which logistics real estate facilitates in many different ways.

The supply chains of today are the result of what has been done in the past; tomorrow’s supply chain will be the result of what we’re doing today.

In our fourth issue of Megatrends in European Real Estate we examine how trends in the retail and service sector, demographics, technology and regulation are all conspiring to ensure that in the short to medium term the outlook for logistics real estate is bright.