E-commerce boom spurs demand for warehouse premises

While cargo-lift-access warehouses rentals expected to be resilient.

It has been noted that the boom in e-commerce has induced new demand for warehouse premises in the city.

According to a research note from Colliers, further, a group of logistics operators see cargo-lift-access warehouses as cost-effective substitutes for ramp-access warehouse space.

In view of sustained demand from end users, Colliers expects that the rental performance of cargo-lift-access warehouses will be more resilient compared with their counterparts.

Here's more from Colliers:

The performance of the two major drivers of demand for warehouse premises, local retail sales and total exports, remained weak over the course of the review period.

In Q4 2015, rents for ramp-access warehouse space inched down 0.3% QOQ while those for cargo-lift-access warehouse space stayed flat.