Maston Investment Management "Increased Importance of Monitoring Logistics Center Locations and Specs Next Year"

Logistics Center Market Trend Report Published
"Major Tenants, Transportation Service and E-commerce Companies,
Expected to Face a Challenging Year Ahead"

Masterton Investment Management, a specialized alternative investment asset management company, emphasized that "with the domestic economy expected to remain sluggish next year following this year, transportation service companies and e-commerce firms, the main tenants of logistics centers in the metropolitan area, will face a challenging year," adding that "precise market monitoring is more important than ever."

On the 4th, Masterton Investment Management's research organization R&S (Research & Strategy) team stated in their report titled 'Checking Trends in Logistics Center Shipper Demand' that "next year's economic growth rate is expected to be 2.2%, higher than this year's 1.4% but below the global forecast of 2.9%." They also noted, "It is important to pay attention to the substantial planned supply of logistics centers," adding, "It is analyzed that approximately 1.3 million pyeong of new logistics centers have been supplied in the metropolitan area up to the third quarter of this year."

However, they also pointed out that "there are positive signals for next year's outlook," explaining, "With a rebound in global manufacturing, export-driven economy may revive, leading to a simultaneous recovery in the domestic economy." Additionally, "After about six years since China's THAAD retaliation measures, China has allowed group tours to Korea again, which could stimulate domestic consumption through increased influx of Yukeo (Chinese group tourists)." They further explained, "Vacancy rates may also improve as the ratio of construction starts to permits issued has significantly dropped this year, leading to adjustments in the planned supply volume."

The intensifying competition among e-commerce companies is also a positive factor. Market share competition among major companies has become fiercer, and as delivery services expand, the attractiveness of logistics centers with excellent locations and superior physical specifications is expected to increase further. The fact that transportation service companies have posted solid performance despite unfavorable domestic and international conditions is also a positive situation for the logistics center market. This is directly related to the continuous demand for logistics centers.

Yoo, the well-known head of Masterton Investment Management's R&S team, stated, "The value of logistics centers with excellent locations and specifications will increase further," adding, "In uncertain economic conditions, systematic tenant analysis by region and precise market monitoring will become more important than ever." Yoo, who leads the R&S team, holds a Ph.D. in Urban Engineering from Hanyang University and serves as an adjunct and visiting professor at major universities in Seoul. Having worked at Woori Bank's Real Estate Research Team and Aegis Asset Management's Asset Management Team, and having served as the head of the research center at Avison Young Korea, Yoo is recognized as a leading expert in commercial real estate research in the industry.

Famous Mastern Investment Management R&S Director [Photo by Mastern Investment Management Brand Strategy Team]