PATRIZIA’s approach to new logistics
A more selective approach is needed with higher vacancy rates than seen in the sector’s boom in the early 2020s (2-300 basis points higher).
The sector is more than just ‘big boxes’ and while that market is experiencing an increase in supply, we see opportunities in the more supply-constrained urban segments relating to production and distribution, such as last mile and multi-let industrial.
The way we segment this is through creating a distinction between consumer-oriented goals and production-oriented goals, as well as strategies for global supply chains versus local ecosystem enablement.
We have translated the (re)manufacturing, city logistics, (inter)national distribution, and materials and energy clusters/quadrants into investment themes, each driven by its own tailwinds. In addition, we have identified target markets (cities, areas, regions) and risk spectrums (core/core+, value add) for these themes, ensuring the right alignment between themes and risk/return profiles for our clients.
