Prologis Research has released the follow-up to its two-part special report on logistics property classification.
The new paper, titled The Evolution of the Modern Supply Chain and Implications for Logistics Real Estate Performance, focuses on how today’s supply chains are undergoing a “mission-critical” evolution as service levels continue to move to the forefront of what businesses need to optimize their operations and revenues.
This new Prologis framework for categorizing properties by their location along the modern supply chain provides data on trends and, importantly, is a means for identifying the future of supply chains and logistics real estate performance.
Key takeaways from the new paper include:
- The market is likely in the beginning stages of the current evolution given that structural supply chain shifts happen over multiple cycles.
- The combination of supply and demand shifts determines long-term real estate performance.
- The future direction of supply chains should produce logistics real estate outperformance in Last Touch® and City distribution properties, as well as highly functional Gateway and Multi-market properties in areas with high barriers to new supply.
Read the full paper here.
Part one of the series, The Modern Supply Chain: A New Model for Defining Logistics Real Estate, is here.