Multi-Use Logistics Rediscovered
JLL finds growing demand for sub-class, amidst competitive industrial landscape
With increased competition among investors for industrial product, JLL Capital Markets has found an important sub-class that is gaining investor interest – multi-use logistics, which are typically older multi-tenant assets with solid footprints within infill urban logistics markets that boast compelling rent growth profiles. These assets often contain distribution, flex showroom, industrial showroom, R&D, warehouse and/or manufacturing space and are between 20,000 and 100,000 square feet.
In a new report, JLL Research discusses the huge potential for this sub-class, which, in part, is attributed to:
Extremely limited inventory
Sale pricing at premiums
High barriers to investment entry
According to Senior Managing Director John Huguenard, Co-Head of JLL’s Industrial Capital Markets group, “The long-term outlook for multi-use logistics is strong, with clear industry momentum from ‘fabric of society’ tenants and growing investor demand for this sub-class. With new yield-focused investors entering into the industrial space, small bay product is desirable as an alternative to the ever-tightening bulk industrial market.”
You can view the full report here.