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Dynamic logistics market

The global logistics markets are seeing steady growth, which will continue thanks to e-commerce. The demand for sufficient storage capacity at transshipment hubs with good transport links is correspondingly high.

September 10, 2020

Global Real Estate of Credit Suisse Asset Management is currently implementing a logistics project in Switzerland and has purchased promising logistics real estate in South Korea.

Global logistics market is booming

The US research and consultancy company IMARC estimates that the global logistics market was worth approximately USD 4,900 billion in 2019. Up to 2025, this is likely to increase by 4.7% per year, to an estimated USD 6,500 billion. The biggest logistics market is in Asia Pacific, followed by Europe, North America, the Middle East, and Africa.

Swiss logistics market

According to the study1 by GS1, the trade association for sustainable value networks, the Swiss logistics market was estimated to be worth CHF 40.3 billion in 2018. Growth was 3.1% year-on-year. Growth of around 2% is anticipated for 2019, and of 1.7% for 2020. Thanks to this continuous growth, demand for logistics real estate will remain high.

Growing logistics hub in Bülach 

Commissioned by Global Real Estate, a new parcel distribution center in the town of Bülach is scheduled to be completed by the end of 2020. Bülach's location close to Zurich Airport and the highway makes it attractive for logistics companies, and a logistics hub has developed around Bülach that has further growth potential.

South Korean logistics market

A good indicator of the growth prospects for the South Korean logistics market is e-commerce turnover. According to estimates by the Japan Economic Foundation2, this will grow from USD 19 billion in 2016 to approximately USD 32 billion in 2021. Another feature is the sharp rise in the market share of third-party logistics service providers – from around 60% in 2012 to more than 70% in 2018. Foreign companies in particular are investing in South Korea in this connection. All of this is leading to a further rise in demand for logistics real estate and anticipated rent increases of 2% per year.

Seoul – South Korea's logistics center

The Seoul metropolitan area is the most important logistics hub in South Korea. Global Real Estate owns two logistics properties in the immediate vicinity of the main highways and close to several properties with similar uses. Logistics properties in South Korea offer an attractive yield pickup over office real estate that is hard to find in Western markets today. The current tenants are two leading external logistics companies with excellent ratings.

What will shape the logistics market in the future

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1 https://zukunftsplattform.gs1.ch/logistikmarktstudie/logistikmarkt
2 https://www.jef.or.jp/journal/pdf/223rd_Cover_Story_04.pdf

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