Logistics asset demand peaks
The logistics property sector appears to be one of the net gainers of the pandemic and will likely continue outperforming, as it has returned to the peak recorded during the previous real estate market cycle.
According to Christos Kakkavas, head of the investments and capital markets department at JLL-Athens Economics, right now any new logistics space of 20,000 square meters can be leased immediately, as there is accumulated demand for such assets that market supply is unable to satisfy.
As a result, both prices and rents have soared for such properties, considerably reducing the investment risk. “The risk was once high and with it the returns. That has changed today, and a building that until a few years ago would yield 11% can now fetch 8% on an annual basis, showing the gradual maturing of the market thanks to the constant development of electronic commerce,” Kakkavas told the Prodexpo 2020 forum on Thursday.
The next anticipated trend in the sector will see demand soar for smaller spaces, of up to 800 sq.m., in districts near Athens city center, such as Votanikos, argued Vassilis Zeibekis, vice-president of the Hellenic Logistics Association.
