70: Real assets: Urban logistics has made the industrial sector exciting again

E-commerce has changed the way we shop in a rapid space of time, growing at an annual average of 17% according to ONS calculations. But our demand for quick, reliable delivery has driven up the demand for logistics-capable properties closer to urban centres and this has reinvigorated the once ‘steady and dull’ industrial real assets sector. Prologis estimates that e-commerce logistics requires three times the floorspace of conventional logistics – a clear opportunity for investors’ capital. But investors piling into the urban logistics trend risk overpaying. A careful consideration of both macro location (growing populations, supportive density, and improving consumer spending) and micro location (which side of the low-emission zone will be best for business?) is key for performance. Our conversation this week dives into the ways this investment theme has developed over the years, why it’s likely to keep growing and also the risks investors should consider before going in guns blazing.  Read Bill’s blog on the subject here: https://futureworldblog.lgim.com/categories/insights/urban-logistics-externalities-and-opportunity/?cid=lgimtalks  ·         Bill Page, Business Space Research Manager, Real Assets ·         Tim Packer, Assistant Fund Manager, Real Assets ·         Mark Chappel, Senior Content Manager We want to hear from you! Email us at [email protected] with your thoughts on the podcast and any suggestions of the guests or types of content you’d like to see covered. This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.