Innovation to be at the forefront of logistics following COVID-19

The financial impact of COVID-19 is still unknown, but it is clear that there will be several months of operational impact throughout  global supply chains.

Colliers International’s latest report studies the impacts of COVID-19 on industrial and logistics occupiers. The paper found that COVID-19 has forced industrial occupiers to focus on supply chain management as they look to become more resilient to future events.

Innovation will come to the forefront as occupiers increasingly adopt technology within warehouses including AI, blockchain, machine learning and predictive analytics.

“Not only has COVID-19 changed the investment landscape, it has reshaped how industrial occupiers go about their business with an increased focus on supply chain management,” said Malcom Tyson, Managing Director, Industrial at Colliers International.

“Occupiers are adapting and are being proactive, with many investing in their omni-channel platforms and reverse logistics, seeking supply chain management solutions and diversifying their supplier networks.”

Colliers recently undertook two industrial occupier sentiment surveys, with the purpose to obtain real time insights into the issues impacting industrial occupiers in the current market. 

“Our survey found that industrial and logistics occupiers are looking at their business and supply chains to achieve efficiencies and better respond to the impacts of COVID-19. As a result, 85% of occupiers have reviewed their supply chain network; 31% are storing more stock locally to avoid shortages into the future and 31% are requiring more warehouse storage space as a result,” said Luke Crawford, Associate Director, Research at Colliers International.
 
“With almost half of industrial occupiers we surveyed suggesting COVID-19 has impacted their revenue, leasing activity has slowed and a large number of occupiers who were previously in the market for new or expansionary space have since placed their decisions on hold.”

“We expect this to remain the case until the future economic environment stabilises or becomes clearer; in the short term, the $70 billion JobKeeper payment initiated by the Federal Government will provide a cushion effect to businesses within the logistics space.”

“Notwithstanding this, there has been a noticeable shift in demand towards defensive occupiers including food and beverage retailers, e-commerce groups, transport and logistics providers, data centres and cold storage occupiers. Recent trends in retail turnover supports this as consumers increasingly shift their spending habits towards non-discretionary items.”

Colliers’ anticipates that rents are expected to stagnate across most industrial markets over the next twelve months as landlords instead choose to increase incentives to secure tenants. 
 

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Malcom Tyson

Managing Director | Industrial

Sydney CBD

Malcom joined Colliers International in 1994 in the North Sydney office as an industrial sales and leasing agent. Colliers International is known in the market for their progressive, collaborative and innovative culture, and he was very determined to join their team. Now as a leader in the business, he facilitates that collaboration across our service lines both domestically and internationally to achieve our goals. Over his 26 years at Colliers, Malcom has developed and grown multiple teams; his current role is Managing Director of Industrial where he heads up the largest and most specialised industrial division in Australia.

In 2005, Malcom joined the ANZ Executive where the leadership group has steered Colliers International to reach incredible growth and further developed our brand and client offering. Malcom became the NSW State Chief Executive in 2006, and leads the 730+ staff in the NSW team across six offices and dozens of on-site management teams. Our NSW business is the Centre of Excellence for the broader Australia and New Zealand teams, and our team leads the business in innovation and best practice.

Malcom's speciality is the sales and leasing of institutional-grade industrial property, and he works to provide his clients with insights into the future of industrial property and where they can reap the most value. Having sold over $6bn+ of property over my career,  Malcom gets a great deal of satisfaction being a trusted advisor and expert for his clients.

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Luke Crawford

Associate Director

Sydney CBD

Luke has eight years’ experience in property research and real estate advisory, providing strategic advice and research to private, government and listed groups. Luke’s current focus at Colliers International is industrial research nationally, where he provides high quality research and advice on the trends impacting the sector to both internal business lines and clients.

Prior to joining Colliers International, Luke has held roles within the Real Estate Advisory Services (REAS) division at KPMG and the Research and Consultancy team at Knight Frank.

Luke’s areas of expertise include property research, demographic assessments, highest and best use analysis and supply and demand assessments across a broad range of property sectors including industrial, office, residential, student accommodation and retirement and aged care.

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