Fund managers are pouring money into warehouses around the world as the long-term fundamentals of the sector remain strong and set for future growth.
A recent deal involving Singapore’s sovereign wealth fund saw the purchase of a $2.4 billion portfolio of warehouses in Europe. Demand for warehousing has been largely driven by the growth in online retailing, which is revolutionising the way we shop and how businesses store their products.

Amazon, one of the trailblazers is already investing in more and more warehouses to help keep pace with customer demands for fast deliveries.

While one after another big high street retailers with long histories seem to be toppling, online shopping has gone from strength to strength and this will only increase demand for warehouses in the future.

Building a warehouse of course requires a lot of space, therefore unlike other commercial property sectors, warehouses can be more profitable than other asset classes because demand is kept high.

Returns from warehouses are said to be better than for office towers by almost one percent, though returns have diminished slightly as more investors have entered the sector in an attempt to find an alternative to bonds. Yields have fallen lower on bonds due to loose monetary policy in Europe and other parts of the world.