Industry news Realogis – RLI Investors Group on the impact of corona virus on the property market for industrial, warehouse and logistics space:
Will the coronavirus lead to the streamlining of logistics property developers and job cuts?
Whereas the office and retail property segments are increasingly expected to experience rent losses as a result of the global coronavirus pandemic, the leading German Realogis-RLI Group anticipates less of an impact on industrial, warehouse and logistics space.
“There is currently a huge range of developers in the logistics property segment. However, the coronavirus pandemic will lead to streamlining and improved quality,” comments Umut Ertan, founder and partner in the Realogis-RLI Group. “Large foreign sources of capital are already seeking alliances with local players that have never really grown beyond their region. Some developers that have not kept sufficient equity available are now looking for strategic partners for joint development,” says Umut Ertan. “At the same time, familiar players will try to return to the market.”