APAC Logistics & Industrial Capability Statement

MARKET INSIGHTS

THE RECENT INCREASE IN INTEREST RATES HAS LED TO A TIGHTENING OF FINANCIAL CONDITIONS, WHICH COUPLED WITH RISING CONSTRUCTION COSTS DUE TO INFLATION, HAS RESULTED IN A SIGNIFICANT DECLINE IN INVESTMENT IN LOGISTICS CENTERS. In addition, there has been an overabundance of cold storage facilities, causing the effective rental gap between dry and cold storage to narrow. These challenging market conditions have polarized investors' preferences even further, with factors such as location, storage type, and facility specifications becoming increasingly important when it comes to investing in logistics centers.

KOREA

New supply of 2.6 million sqm in 2H 2023 continuing to add to residential and commercial district stock

Cushman & Wakefield

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