“Industrial real estate returns across the globe have been robust over the last decade and are currently forecast to significantly outperform in the near term. However, medium- to long-term prospects are far more uncertain. Structural shifts in e-commerce, technology and decarbonisation policies are likely to result in markedly lower levels of aggregate demand, an increase in capital expenditure requirements, and subsequently weaker returns. While these factors are likely to vary in intensity by city, country, and region, their potential impact will need to be incorporated into long-term investment strategies,” said Christopher Babatope, Associate Director at Oxford Economics.
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