In case you missed it: this month, a new report showed that e-commerce logistics cost for retailers are at an all-time high, representing $117.2 billion. This is driven by the way Amazon has revolutionized and enhanced consumer expectations for delivery speed, delivery price, and assortment. Also this month, U.S. federal industrial production data showed a 3.5% spike year-on-year, marking the third straight month of gains in 2018. As a result, we are seeing a sharp uptick in industrial real estate leases from major consumer packaged goods companies, who are under unprecedented pressure– to not only produce– but also rapidly distribute.
At Elion, we are pleased to see market data align with our economic outlook, which further reinforces our investment strategy. With the majority of our assets under management comprised of industrial properties, we focus on projects in areas that present the most compelling investment opportunity, including supply-constraint and urban infill locations.