14 Real Estate Investment 2022 The logistics sector The opportunity Logistics is firmly established with real estate investors as a critical growth portion of their current and future property portfolio. The importance of e-commerce is rising. Shifts in buying behaviour, technology and sustainability demands are impacting transport, storage and fulfilment needs, giving logistics strong potential for growth. The sector offers huge opportunities for green investors. Many are setting up green funds focused purely on logistics. Developers are also adding solar farms to sheds, making them carbon neutral or energy producing spaces. This allows both tenant and landlord to improve their sustainability and green credentials. Despite the economic disruption caused by COVID-19, the logistics sectorhas proven resilient due to two major structural trends: urbanisation and the digitisation of the economy. It’s now easy to get funding for a logistics project, and they’re considered a favourable asset class for lenders whoare divesting retail and investing that capital in logistics. Innovation is needed in this space. Occupiers will be willing to pay morefor the best high-quality, tech-enabled space, commanding increased rents. With short build periods and logistics sites that are often pre-let to just one established occupier, funders are attracted by the ease of the deal - and a quicker return on investment.