Logistics in online trading - the next gold mine for the property market
Report of the Goodman Group explores the huge impact that internet commerce plays on the market for retail and logistics properties
The Sydney-based Goodman Group predicts growth in demand for logistics properties due to the development of electronic commerce worldwide. The report was made for Goodman Group by the company Transport Intelligence, which provides data and analysis on industrial estates. There, the company explores the huge impact that internet trading plays on the market for retail and logistics properties. In particular there is a growing market demand for warehouse spaces, custom built for a specific client (so-called built-to-suit) for their e-business.
The report also says online shopping now accounts for nearly one fifth of all purchases in the developed markets and is growing at between 15 and 20% per year. Growth in developing economies is much higher. For example, e-commerce in China is growing by about 75% per year.
Internet commerce is rapidly booming, due to the unfavorable conditions under which the retail sales in many markets. This change in consumer attitudes has brought enormous benefits for the global logistics market. With an average growth of over 10% per year in many developed economies and 30% in many less developed markets, electronic trade shows few signs that it is slowing down.
The results of the report confirm that there is high demand for quality custom-made storage solutions in this rapidly growing sector. This in turn, presents many opportunities for groups holding properties as Goodman, who understand the dynamics of the local market and have specialized expertise and experience to meet the needs of specific type of electronic properties of individual merchants and third logistics providers.
The company already has experience with many online merchants who use its warehousing and logistics solutions. One of them is Amazon, which several years ago started as collaboration with Goodman, because of its need for additional storage areas in Germany.
The study made for Goodman confirms the report of the consulting firm CBRE, according to which e-commerce will be one of the main engines on the market of logistics in the future.
