Industrial property starting to become expensive as demand eases
Industrial rental rates and asset values are tapering off after a strong run
28 June 2021 - 20:02
Shares and assets of listed companies focusing on logistics and warehouse buildings may be fully priced with rental rates unlikely to rise further as oversupply of storage and supply chain interruptions put a damper on the property subsector.
Specialised high-end industrial properties have had a strong run over the past five years or so but share price growth has been less exciting in 2021. The Covid-19 “black swan” event accelerated the need for businesses to have an online presence. But the good days may soon be over as the once heavy demand from online retailers for warehousing is easing...
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