Logistics in a fragmented world

I wrote this article for PERE two years ago. Today, the world seems to be fragmenting faster, so I am resharing it here.

We know global supply chains will change but have little idea how. So, how should real estate investors react?

Part of the answer is to diversify, including away from an investor's home country. The future will surprise us, and the best way to prepare is to build up holdings in various geographies.

In addition, real estate investors may focus their logistics exposure on assets close to consumers. While there are likely to be significant changes to where manufacturing occurs, I expected more continuity in where consumption occurs.

Investors should favor assets that facilitate the delivery of goods to large cities with robust labor markets and strong demographics. As we adapt to a more fragmented world, such investments add resilience to logistics portfolios.