The traditional cliche with real estate is location! location! location! but in a post covid and online ordering world the new cliche may very well be logistics! logistics! logistics! We came across a great article by Mark Solomon over at Freighwaves.com.
We encourage you to read the whole article but the line that caught our eye was this:
Demand for smaller locations is being fueled by the growth in “urban logistics,” where facilities are positioned near densely populated cities to support last-mile deliveries of online orders.
Freightwaves.com
We recently made the case for ILPT REIT back in November. We added the equity to our portfolio with high hopes that the new normal in supply chain will cause a fundamental shift in how “just-in-time” manufacturing swings back into “fat manufacturing” instead of lean manufacturing. We don’t expect manufacturing to go full blimp mode but we do expect some core changes. The move from brick and mortar retail to online order will further change the logistics landscape over the next decade.
We hope to add more ILPT to our portfolio over the next few years during pullbacks and corrections. We are also exploring some other investments in similar categories.
Stay tuned to learn more!
CNBC has a recent video of what is happening with warehousing across the United States.
Disclosure: One or more Econonaut member(s) holds positions in ILPT.