4 reasons logistics real estate will dominate in 2018

As we look to 2018, four themes have emerged in the logistics real estate market:

Greater pace and breadth of rent growth. Rent growth accelerated in 2017 with rents up 9% in the U.S. and nearly 3% in Europe. Clear differentiation emerged by market, by sub-market and by size category. Infill locations and dynamic economies with multiple demand drivers have performed best. At the same time, customers continue to outbid one another as rents remain low on an inflation adjusted basis and rents are a very low share of supply chain costs (5%) and total costs (