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Improved demand drives industrial and logistics real estate absorption last quarter

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Improved demand drives industrial and logistics real estate absorption last quarter

The industrial and logistics real estate sectors experienced a significant increase in absorption rates in Q3 2021, driven by growing demand from various sectors. The absorption of industrial and logistics assets reached 17.5 million square feet in the July-September period, up from 11.4 million square feet in the same period last year. Tier I cities accounted for 80% of the total absorption. Third-party logistics and manufacturing were the top sectors driving demand. There was also a rise in the supply of industrial and warehousing assets, with 19.3 million square feet added during the quarter. This trend is aligned with the surge in private equity capital flows into the real estate segment, particularly in industrial and logistics assets.

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