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Corporate occupier demand for logistics and distribution space is expected to increase further in the first half of 2016, with a global positive balance of 49.4 percent, said JLL.
In its second Global Logistics Sentiment Survey report, the property consultancy noted that while corporate demand for logistics and distribution space in 2015 had a global corporate balance of 47 percent, it is, however down by 10 basis points from its first survey last year.
For this study, JLL polled 650 logistics market experts across the world for their opinions on the market’s performance during the second half of 2015 and their expectations for the first half of 2016.
“Our survey results indicate that both occupier and investor demand remains healthy in many markets, but with some perhaps now feeling less optimistic, or maybe more guarded, about the immediate future than others,” it said.
Notably, EMEA and Asia Pacific now have higher positive balances than the Americas, with Asia Pacific garnering notably stronger early-2016 expectations.
Spain and the United Kingdom generated the highest levels of future optimism in EMEA, while Australia, Japan and China (benefitting from a shift to a consumer-driven economy) top other Asia Pacific markets.
Meanwhile, supply for corporate occupiers continue to drop in the Americas and EMEA, while the Asia Pacific reported a positive balance of 13 percent.
Globally, available supply of property options has a negative balance of 11.8 percent during the last six months of 2015.
The report revealed that supply of available logistics stock is expected to increase marginally in 1H 2016 (a positive survey balance of 5.7 percent), driven almost entirely by future expectations from the Asia Pacific region.
As to when rents would peak, 54.2 percent of the respondents in the Americas believe that rents would peak at some point in 2016, with majority pointing to the fourth quarter, while Asia Pacific respondents expect a spike in late-2018.
Growth in net effective rents was observed across all three regions during the last six months, with a net positive balance of 45.7 percent.
The Americas registered the strongest level of balance followed by EMEA and Asia Pacific.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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