The European logistics sector remains on track to outperform any other sector regardless of economic performance, according to Philip Dunne, the recently appointed EMEA head of logistics at CBRE Global Investors.
'The logistics sector is growing faster than the overall economy and I think demand will continue to be strong in any cycle,' Dunne told PropertyEU at Expo Real in Munich earlier this week. 'I think logistics will continue to outperform under any economic conditions because it is underpinned by investor appetite for the returns and cashflows that you can generate from this asset class.'
Eommerce continues to be a significant driver of growth for the sector, he added. 'Even if there is a slowdown, demand for high-quality logistics will remain strong. It is not immune to a change in the economic environment, but a downturn would be a time for investors and customers to take stock. From the outset i have said that even in a slowdown customers need to pursue a most efficient way to get their products from the producer to the consumer.'
There are two things remain important for the ongoing growth of the logistics sector, he continued. 'The supply chain configuration is one growth driver and that continues apace in all major markets around Europe. That in turn is driving demand for more high-quality modern facilities in and around the major logistics cities and transport hubs.'
The online phenomon still feels fairly embryonic on the Continent compared to the UK, he added. 'I think the growth of ecommerce will continue to be a significant driver of growth for the sector. Even if there is a slowdown, demand for high-quality logistics will remain strong. It is not immune to a change in the economic environment, but that would be a time for investors and customers to take stock. From the outset i have said that even in a slowdown customers need to pursue a most efficient way to get their products from the producer to the consumer.'
In his new role at CBRE GI, Dunne (pictured here at Expo Real in Munich) said he would be working with the team to develop a strategy for the sector and involve the investment strategies for our companys clients. 'We have broqd access to capital and every source has some appetite for logistics almost without exception. At CBRE GI, we have developed scale which is important to meet the demands of our investors.'
