- Take it or leave it attitude of logistics Landlord
The recent price weakness of Logistics REITs, due to inflation fears as well as interest rate hikes, presents a good entry point in this particular asset class segment. Mapletree Logistics Trust, AIMS APAC REIT and ESR-LOGOS market prices have declined significantly over the past 6 months. Locally, there are many positive rental reversion cases in view of the limited warehousing space available. 5 years ago, the whole warehousing space market was in a terrible low occupancy state with rates plunging to S$1.00psf in Western Singapore. Since post COVID era, the cost of space has ballooned to between S$1.50 to S$2.00 at most warehousing facilities.