We expect net absorption for logistics warehouses to remain positive in 2020, supported by the pent-up demand that was suppressed due to the pandemic.
The pandemic also strengthened e-commerce and food storage facility demand. We forecast rents to recover to pre-COVID-19 pandemic levels by the end of 2020, although vacancy will likely increase for both the GZ and FS markets due to new supply. We recommend landlords to adopt more flexible lease terms amidst the more tenant friendly market.
