Logistics & Industrial Capital Markets 2024 Outlook Report

Notwithstanding this, demand from select sectors is expected to be more subdued in 2024, namely the retail trade sector, as some retailers scale back inventory levels, given there is now greater certainty around shipping costs and timeframes. At the same time, consumers face challenging headwinds given cost of living pressures, and a pullback in spending is likely to occur in 2024 which will weigh on the expansion plans of some retailers. Offsetting some of this pullback from retailers will be demand from the transport and logistics and manufacturing sectors.

Our enquiry data shows that the transport sector accounts for up to 50% of all enquiries in some markets, while the outsourcing of warehousing and transport functions is expected to increase in coming years as retailers and wholesalers look to mitigate risk from rising rents and labour shortages. The manufacturing sector has seen a resurgence in take-up since 2020 and stems from government investment with a clear focus on Research and Development (R&D) and innovation.

Figure 32. 2023 Gross Take-up By Sector

50.0%

44.3%

45.0%

40.0%

35.0%

30.0%

23.3%

25.0%

20.0%

13.8%

15.0%

8.8%

10.0%

3.6%

3.5%

2.8%

5.0%

0.0%

Transport & Logistics

Retail Trade

Manufacturing Construction

Wholesale Trade

Health / Pharmaceutical

Other

Source: Cushman & Wakefield

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