The impact of technology on real estate: Implications for retail and logistics

Short term performance of global property markets will be largely determined by the speed and scale of economic growth; investor demand remains highly focused on those developed markets that offer economic stability or emerging markets with exceptional growth prospects.

It is important, however, that investors do not lose sight of some of the structural changes that will determine long-term real estate winners and losers.

Technological evolution will have a significant impact on demand for property and should be a key consideration in both portfolio management and investment strategy. With online shopping growing in popularity, landlords certainly need a defense strategy to ensure their retail assets remain viable, while those that ignore it risk obsolescence. There is no shortage of commentary about the threat that online retailing poses for bricks and mortar retailing, but little about the opportunity it presents to landlords that exploit it.

This report looks at how rapid growth in e-commerce is shaping demand for shops, as well as logistics and warehousing facilities, and how property investors can gain exposure to this growth.

- Alice Breheny
Head of Research, Property