The disruption caused by the coronavirus (COVID-19) underscores the need for resilient supply chains and has become a catalyst for many organizations to find workarounds that could become permanent (e.g., telecommuting/office, e-commerce/retail). Prologis’ Research team took a closer look at the potential impact to the logistics real estate sector and has released a special report titled “COVID-19 and Implications for Logistics Real Estate.”
The report examines the potential effects of COVID-19 on economic growth that could in turn affect real estate. It also assessed how the decreased production and movement of goods (and people) around the world have tested complex supply chains. Key takeaways:
- COVID-19 represents a headwind to the lengthy global economic expansion that will likely affect real estate in the near-term
- However, logistics real estate is likely to prove resilient, owing to its essential role in facilitating daily consumption, as well as bolstered by structural tailwinds such as rapid replenishment
- In the medium- to long-term, supply chain adjustments should generate positive demand via rising inventory levels, accelerating e-commerce adoption, and redundant manufacturing locations.
The paper also provides specific insights for customers and investors as they navigate the evolving situation globally.