Data from Savills shows that total investment in industrial and logistics was down more than 20% last year and 2019 is on course to produce another drop. Knight Frank's data for January to July shows total deal volume for the sector in the UK
dropping from £4.767bn in 2018 to £3.125bn this year – a 34% decline.
Matt Garrod appears in Property Week discussing this drop: "The big logistics assets will continue to be attractive to big investment funds on the basis that there is that long-term income and capital growth angle," he explains. "That will continue not least because of the supply and demand issue. But those willing to be a little more creative might go down the enhanced asset management route and do something they haven't done before."
Why the slowdown in logistics investment is not all bad news is available to read on the Property Week website via subscription.
Matt is a partner in the real estate team, advising clients on a range of real estate transactions including investment acquisitions and disposals, premises acquisitions for major retail clients, landlord and tenant matters, development and real estate finance. Matt also has experience in dealing with complex portfolio transactions.