Investing in logistics real estate today: strategies for managers and decision makers
The logistics real estate sector is experiencing unprecedented growth, driven by the expansion of e-commerce and the growing demand for innovative distribution solutions. Investing in this sector not only offers attractive returns but also represents an opportunity to diversify the portfolio, reducing risk through a targeted strategy.
In Italy, the logistics market stands out for its high returns compared to the European average, with percentages as high as 5.25% compared to 4.40% in Europe. This makes Italy particularly attractive in an economic environment characterised by low returns on other traditional assets, such as offices.
With the adoption of advanced technologies and an increasing focus on sustainability, investing in logistics means not only focusing on a dynamic sector, but also contributing to more efficient and eco-friendly models in the long term.
The success of logistics as an asset class in the real estate market
The logistics sector has consolidated itself as the leading asset class in the Italian real estate market. In 2023, investments in this sector reached almost EUR 1.7 billion, representing 27% of the total market volume. This figure confirms the strategic importance of logistics in a context of growing demand for modern and sustainable spaces.
In the first half of 2024, the positive trend continued with investments of around EUR 500 million. The continued demand for efficient logistics centres stems from the expansion of e-commerce and the need for companies to optimise the distribution chain to ensure fast and reliable deliveries. Facilities such as logistics hubs or industrial parks play a crucial role in accommodating advanced technologies and facilitating logistics automation.
Some key factors that make logistics attractive include stable yields compared to other real estate asset classes and growth prospects, linked to the increasing adoption of eco-sustainable architecture in manufacturing facilities and logistics districts. Furthermore, renting warehouses within logistics hubs is advantageous, both for companies seeking operational flexibility and for real estate investors interested in diversifying their portfolios.
The resilience demonstrated by the sector even in macro-economically complex times makes it a preferred choice for high-level real estate decision-makers. The evolution towards more specialised solutions further strengthens logistics’ competitive positioning in the national and European real estate landscape.
Advantages and opportunities for investors in the logistics sector
The logistics sector represents a strategic opportunity to diversify investment portfolios. The growing demand for logistics space, driven by the expansion of e-commerce and the need to optimise the distribution chain, creates an ever-expanding market. Investments in logistic real estate provide respectable returns and reliable stability, thanks to long-term leases that secure those who invest in this sector.
In the first half of 2024, the sector recorded approximately EUR 470 million invested, or 14% of total Italian real estate investments. This figure confirms the attractiveness of the domestic logistics market, compared to other asset classes such as office or retail. Net returns are around 5.5%, with more competitive values in prime locations.
Another significant advantage is the very low vacancy rate, which is around 2% nationally and drops close to zero in the most dynamic logistics hubs. This feature provides investors with stable profitability and less risk associated with unused space.
In addition, the integration of innovative technologies into business logistics is transforming this sector into a cutting-edge platform for automated and efficient solutions. Logistics automation and advanced warehouse organisation improve the operational productivity of modern logistics centres.
Eco-sustainable settlements offer additional investment opportunities related to environmental sustainability. Structures designed according to green architectural principles attract companies oriented towards responsible practices, thus increasing the overall value of assets over time.
What does it mean to invest in real estate?
Investing in real estate means acquiring physical property such as buildings, land or structures built to generate income or increase capital value over time. This may include renting, selling or developing real estate with specific financial objectives.
There are four main categories of real estate investments: residential, commercial, industrial and logistics. Real estate logistics is distinguished by its strategic importance in the distribution chain. Facilities such as warehouses and logistics centres serve to improve the efficient logistics of companies by supporting activities related to the storage and distribution of products.
Investors can earn money in different ways. For example, by renting space in logistics hubs or reselling a renovated property at a higher value than the initial purchase price. Renting warehouses in logistics hubs is an advantageous solution, both for companies in need of operating space and for those seeking stable rental yields.
Among the main advantages of real estate investments are portfolio diversification and inflation protection. In addition, innovative sectors such as logistics offer opportunities related to logistics automation and environmentally sustainable settlements that increase the value of assets in the long run.
To optimise the return on investment in real estate, it is crucial to carefully evaluate factors such as geographical location and low vacancy rates. In the Italian context, high-demand areas emerge, characterised by the presence of well-developed logistics hubs with advanced infrastructure and efficient organisational models for warehouse management.
Adding real estate to your portfolio
Integrating logistics real estate into the investment portfolio represents a strategic opportunity to diversify and ensure stable returns. The growing demand for logistics space, fuelled by e-commerce and the need to optimise distribution, makes this sector particularly profitable.
To maximise the benefits, however, it is necessary to focus on key areas, such as logistics hubs or industrial parks that are well connected to main infrastructure. These areas offer very low vacancy rates of less than 2 per cent and allow profitable leases due to constant demand. For example, investing in a logistics hub located in prime locations in Northern Italy can guarantee profitability above the national average.
Modern and efficient facilities are key to attracting reliable tenants. The integration of logistics automation and the adoption of advanced technologies improve the operational efficiency of properties and increase their value on the market. Working with general contractors like us at AKNO Group who specialise in logistics facilitates the development or renovation of environmentally sustainable logistics centres that meet today’s needs.
We also found that decision-making groups in the pharma and other industries are increasingly exploiting technologically advanced logistic hubs in their distribution models. This trend expands the opportunities for those who choose to invest in business logistics related to high-growth manufacturing sectors.
Finally, we see the role of property management in the management of acquired assets as essential: maintaining competitive structures ensures stable rents and minimises operational risks. Investors can also make money through strategic resale after targeted interventions on environmentally sustainable architecture or redevelopment of existing properties in emerging logistics districts.
Investment companies (REITs)
Real Estate Investment Trust (REIT) companies are an effective solution to diversify portfolios and enter the logistics real estate sector without directly purchasing physical properties. These companies own or manage real estate while generating income by renting space, such as warehouses in logistics hubs or distribution centres.
REITs offer significant advantages due to their structure. To qualify as such, they must distribute at least 90 per cent of taxable income in the form of dividends to shareholders. This ensures stable cash flows even in changing economic conditions. In addition, many REITs are listed on the stock exchange, allowing for greater liquidity than traditional real estate investments.
In the context of Italian corporate logistics, REITs allow investors to benefit from competitive returns in the local market, with average net rates around 5.5%. The strong demand for well-located and efficiently organised logistics space helps to keep the vacancy rate low (around 2%). In particular, prime locations and trophy assets can offer superior performance.
Through REITs it is possible to gain exposure to modern, environmentally sustainable production facilities that integrate advanced technologies and automated solutions to optimise warehouse logistics. These instruments are particularly attractive when combined with property managers experienced in improving the competitiveness of assets over the long term.
For those who wish to participate in the expansion of the sector, but do not want to engage in the direct management of industrial real estate or logistics parks in Italy, REITs are a strategic and efficient option to make money in modern logistics-related real estate.
Real estate shares
Real estate shares represent an attractive alternative to enter the logistics sector without directly purchasing physical property. By investing in listed companies specialised in logistics real estate, we can participate in the growth of the logistics real estate market while benefiting from stable income and diversification.
These companies generate revenues mainly from renting space in highly demanded logistics hubs or centres with very low vacancy rates. For example, the average Italian rate is around 2 per cent, which is significantly lower than the European average.
Investing in real estate shares also allows one to focus on innovative solutions such as environmentally sustainable production facilities and logistics hubs integrated with logistics automation technologies. This approach supports more efficient operating models and attracts reliable tenants from the most dynamic industries, such as the pharma sector.
Professional management by property managers also ensures that facilities remain competitive over time. This organisation simplifies many operational aspects, reducing the risks associated with direct asset management. Since these companies are often subject to specific regulations on dividend payments (like REITs), investors can benefit from steady flows from renting out warehouses in Italy’s major logistics hubs.
Real estate ETFs
Real estate ETFs are a versatile tool for investing in the logistics sector without purchasing physical properties directly. These funds track the performance of a real estate index, including within them diversified securities such as REITs (Real Estate Investment Trusts). By investing in a single ETF, we gain exposure to multiple assets related to logistic real estate.
Among the main advantages of ETFs are their operational flexibility and low costs due to passive management. ETFs are traded like stocks in the market, allowing us to easily buy or sell according to portfolio needs. In addition, they give us indirect access to modern, eco-friendly logistics centres designed to improve efficient logistics and support responsible practices.
The Italian logistics sector continues to attract capital thanks to competitive net yields (5.5-5.8%) and very low vacancy rates (around 2%). Through ETFs, we can benefit from the positive performance of the sector without directly managing real estate or facing specific risks related to renting warehouses in logistics hubs. This strategy is ideal for those looking for simple and effective investment solutions in modern logistics.
In order to maximise the benefits offered by real estate ETFs, we evaluate products that reflect diversified indices with a focus on innovative and sustainable production facilities located in strategic areas well connected to Italian intermodal networks. This approach ensures dividend stability and balanced exposure to European logistic hub developments.
Risks of real estate investment
The risks associated with real estate investments in logistics include several factors that can affect the value and profitability of assets. We analyse the main ones.
Endogenous factors
The type, size and fungibility of the property are crucial elements to ensure a stable investment. For example, a logistics centre that is not adapted to the needs of logistics automation or warehouse organisation may be less attractive to operators in the sector. In addition, facilities that are inadequate for efficient logistics risk losing competitiveness.
Liquidity risk
Logistics real estate has a lower liquidity than other types of financial investment. The possibility of selling quickly depends on geographical location and general interest in well-connected logistics hubs or industrial parks.
Sector volatility
Although generally considered less volatile than other asset classes, logistic real estate can be affected by economic crises or fluctuations in global demand. Rising operating costs in logistics hubs and regulatory uncertainty can negatively affect investments.
Technological risk
Insufficient integration of modern technologies represents a significant risk in the business logistics sector. Outdated structures may not meet the growing market demands for operational efficiency and environmental sustainability, penalising the performance of production facilities.
Carefully evaluating these aspects is essential to mitigate the risks associated with real estate investment in modern logistics.
Rising rents and stable returns
Net yields in the Italian logistics sector fluctuate between 5.5% and 5.8%, offering a stability that continues to attract investors. In the most dynamic locations, such as well-connected logistics hubs, rents can reach values of up to 67€/sqm. This growth is supported by the strong demand for modern and efficient space.
The leasing of space in logistics parks represents an advantageous opportunity for both companies in need of advanced solutions and investors looking for constant flows. Logistics centres located in strategic areas benefit from very low vacancy rates of around 2%, guaranteeing long-term profitability.
The integration of logistics automation is further increasing the attractiveness of prime real estate. Facilities with environmentally sustainable architecture and innovative technologies meet the needs of tenants oriented towards efficient logistics, thus improving the overall value of the assets.
Investing in manufacturing or industrial locations within logistics hubs allows not only stable returns, but also diversification of the investment portfolio. The expansion of the pharma sector and the increasing adoption of technologically advanced logistic hubs confirm the strategic importance of the sector in the modern distribution chain.
Future challenges for logistics
Logistics faces growing challenges related to sustainability, automation and demand management. The growth of e-commerce requires efficient logistics solutions with a focus on modern, optimised spaces to ensure speed and accuracy of delivery.
The adoption of innovative technologies such as artificial intelligence and logistics automation is transforming the industry. These technologies improve warehouse organisation, reduce human errors and increase productivity. However, they represent a significant economic challenge for less structured companies.
The topic of sustainability has gained centrality in the logistics market. Production facilities with a low environmental impact are increasingly in demand by real estate decision-making groups. Thus, environmentally sustainable architecture becomes a key element in the design of new logistics hubs.
Another critical challenge is the scarcity of available space in Italy’s main logistics hubs, where vacancy rates are around 2 per cent. This phenomenon fuels high competition among real estate investors to access the best assets or develop new industrial parks in strategic areas.
Finally, the role of property management will be crucial in maintaining the competitiveness of existing properties. Capable facility managers will be able to optimise both the operational costs and the environmental performance of facilities, meeting the needs of tenants in sectors such as pharma and e-commerce.
These dynamics highlight that investing in logistics will bring not only opportunities but also complexities to be managed through strategic vision and targeted technological innovations.
Real estate sectors to focus on in 2024: living and logistics
The real estate market in 2025 offers interesting opportunities in the living and logistics sectors, two asset classes that guarantee diversification and competitive returns. Both sectors respond to stable growth trends, supported by specific needs such as new living arrangements and evolutions in the supply chain.
Living in 2024
In the living sector, there is a growing demand for innovative solutions in response to demographic changes and consumer preferences. The need for flexible housing encourages the expansion of models such as co-living or sustainable residences designed with eco-friendly architecture. Furthermore, major cities are seeing an increase in investment in multifunctional projects that integrate residential spaces with commercial services to improve the quality of urban life. Investing in living real estate therefore allows investors to capitalise on resilient assets over the long term.
Logistics
Logistics continues to attract the interest of investors due to the growing demand for modern and efficient logistics hubs. In the first half of 2024, some EUR 470 million of investments were made in logistic real estate in Italy, supported by the expansion of e-commerce and the demand for well-connected logistics centres. Renting warehouses or facilities in logistics parks is a strategic opportunity for stable incomes due to very low vacancy rates (around 2%). Logistic automation and optimised warehouse organisation are transforming the industry, making production sites more competitive and eco-friendly to attract reliable tenants.
Logistics trends
The Italian logistics sector is undergoing a phase of rapid evolution, driven by technological innovations and growing demands related to e-commerce. This scenario has stimulated significant investments in logistics real estate.
Lombardy is the sustainability driver for logistics real estate
Lombardy is a leader in the development of environmentally sustainable solutions for the logistics sector. The focus on designing logistics parks with low environmental impact architecture meets the needs of investors oriented towards ESG standards. This is why we at AKNO Group are based near Milan, in Settala, and our largest business parks are almost all in Lombardy and in any case in the Po Valley area between Piedmont, Lombardy, Veneto and Emilia-Romagna.
Modern infrastructure in the region not only improves business logistics, but also attracts companies interested in leasing efficient and sustainable space, such as automated warehouses or logistics hubs optimised to reduce operating costs and emissions. In addition, logistics hubs in Lombardy, such as those of AKNO Group, are among the most desirable areas due to their strategic location and direct connection to national and European networks, making them a unique investment opportunity in modern real estate.
Towards a year of opportunity and sustainable growth
The logistics sector in Italy continues to offer significant opportunities for investors due to the growing demand for modern and sustainable space. In the first half of 2024, approximately EUR 470 million was invested in the logistics sector, representing 14% of national real estate investments. This positive trend confirms the market’s attractiveness compared to other asset classes.
Sustainability is becoming a central element in the evolution of logistics centres. Only 15% of existing buildings can be considered truly eco-sustainable, but the projects completed since 2015, and all those of AKNO Group, have been incorporating green logic for years in order to obtain international certifications such as Leed or Breeam. Investing in eco-sustainable architecture contributes to increasing the value of assets but also meets the needs of ESG standards-oriented companies.
Logistics automation and advanced technologies are transforming warehouse management, improving operational efficiency in corporate supply chains. Well-located business parks, such as those of AKNO Group, attract reliable drivers, thanks to modern infrastructure that optimises operating time and costs. For example, almost all of our business parks are located near motorway toll booths.
Industrial companies like ours at AKNO Group are developing innovative business parks dedicated to modern, environmentally sustainable logistics in northern Italy. These production facilities integrate efficient property management to maintain high quality standards in the years to come.
What are the types of real estate?
There are different categories of real estate that offer investment opportunities. Each has specific characteristics and advantages according to the investors’ objectives.
Residential sector
The residential sector includes traditional housing, student residences and homes for specific needs, such as senior living. The growing demand for innovative housing solutions favours the development of concepts such as co-living or sustainable settlements. In particular, the concentration in large Italian cities offers significant opportunities due to high demand and new lifestyles.
Private segment rentals (PRS) and build-to-rent (BTR) are attractive models for institutional investors, providing stable incomes. However, it is crucial to carefully evaluate factors such as geographical location and the balance between supply and demand.
Commercial sector
The commercial sector includes retail shops, shopping centres and modern offices. This sector is influenced by the dynamics of the local market and the growth of e-commerce, which changes the needs of physical retail space.
Investing in commercial real estate requires a focus on strategic locations with high visibility or accessibility, close to major urban hubs. In addition, the integration of technology in shops is changing the organisation of interior spaces and improving their operational efficiency and customer experience.
Industrial and logistics sector
The industrial-logistics sector comprises modern and efficient warehouses for production or company logistics activities. Logistics hubs play a key role in the management of rapidly expanding e-commerce-optimised distribution chains.
Italy has a record number of investments in real estate logistics
The real estate logistics sector in Italy has performed exceptionally well in recent years. In 2023, investments reached EUR 1.5 billion or 25 per cent of total real estate investments. This positive trend continued in the third quarter of 2024 with a record volume of EUR 640 million, surpassing the previous two quarters combined (EUR 490 million). These figures highlight the growing confidence of investors.
Northern regions such as Lombardy, Veneto and Emilia-Romagna represent the country’s main logistics hub. They contribute a total of 60 per cent of national investments, thanks to their advanced infrastructure and attractive locations for modern production facilities and logistics centres.
The demand for efficient spaces remains high due to the expansion of e-commerce and the increasing adoption of logistics automation. Logistics hubs certified according to international environmental standards such as LEED or BREEAM demonstrate a growing sensitivity towards environmentally sustainable architecture. Such features not only attract sustainability-oriented companies but also increase the long-term value of assets.
Net yields in the Italian market are competitively around 5.25%, above the European average of 4.40%. This dynamic makes our country particularly attractive for those looking for solid opportunities in logistic real estate or in renting warehouses located in major industrial parks and state-of-the-art logistics hubs.
In addition, the operational efficiency ensured by very low vacancy rates (around 2 per cent) reinforces the stable profitability of our logistics-related real estate investments.
AKNO Group is a leader in warehouse logistics
AKNO Group is a benchmark in the warehouse logistics sector in Italy. With over 50 years of experience, it stands out for the development, design, construction and management of innovative and sustainable logistics parks. Our projects integrate eco-sustainable architecture and advanced technologies, meeting the needs of companies oriented towards operational efficiency and compliance with ESG criteria.
The logistics hubs developed by us at AKNO Group offer tailor-made solutions for various industries, including the pharma and e-commerce sectors, providing optimised space for the movement of goods. We collaborate with experienced general contractors in the real estate sector to design logistics hubs that combine logistics automation with highly efficient warehouse organisation.
AKNO Group’s facilities include logistic hubs located in strategic locations in northern Italy, such as Lombardy and Emilia-Romagna, key areas for productive investments thanks to the established infrastructure network. Through services such as qualified property management and accurate facility management, we ensure investors a stable return on the real estate assets in our business parks dedicated to corporate logistics.
Investing through AKNO Group means accessing opportunities in modern logistics hubs that reduce operational risks through extremely low vacancy rates and competitive leases.
Invest safely with AKNO Group
AKNO Group represents a benchmark in the real estate logistics sector in Italy. Investing in a logistics hub or business park developed by AKNO allows you to make money in real estate while contributing to more efficient and environmentally friendly business models. Furthermore, the role of property management managed by qualified professionals ensures continuous maintenance of real estate assets and maximises the value of long-term investments.
Thanks to its extensive experience as a general contractor specialising in industrial real estate, AKNO Group stands out in the creation of modern production facilities that meet the challenges of logistics automation and environmental sustainability. Choosing AKNO Group means accessing secure investment opportunities in Italy’s major logistics hubs with solid future prospects.
Key Points
- Growth in the logistics sector: real estate logistics is booming, driven by e-commerce and the need to optimise the distribution chain.
- Competitive returns: investments in Italian logistics real estate offer net returns of 5.5 per cent, above the European average.
- Very low vacancy rates: with an average rate of around 2%, the risk associated with unused space is minimal, ensuring stable profitability.
- Focus on sustainability: environmentally sustainable settlements are increasingly in demand, increasing the value of assets and meeting ESG standards.
- Technological innovations: logistics automation and advanced technologies improve productivity and operational efficiency in modern logistics hubs.
- Strategic diversification: investing in logistics is an opportunity to diversify portfolios with stable assets with high growth potential.
Contact AKNO Group to invest in logistics real estate
Investing in logistics real estate represents a unique opportunity to achieve competitive returns and diversify the portfolio with strategic assets. Thanks to AKNO Group‘s many years of experience, we have access to innovative and sustainable solutions that meet the needs of the modern market.
AKNO Group stands for reliability and efficiency, with logistics hubs located in key areas of northern Italy and professional asset management. By collaborating with all players involved in the real estate world, we reduce operational risks and maximise the value of your real estate investments.
Don’t miss the opportunity to enter an ever-expanding industry. We use AKNO Group‘s expertise to build a future-oriented portfolio, combining stable profitability with responsible practices that make a difference in the global market.
The FAQs of real estate investment in the logistics sector
What is the average return on real estate investments in logistics in Italy?
The average net return for real estate investments in the logistics sector in Italy is around 5.5 per cent, with more competitive values in major strategic locations.
Why is the logistics sector a good investment?
Investing in logistics offers attractive returns, low vacancy rates (around 2%) and opportunities related to innovation and sustainability. In addition, the growing demand for logistics space ensures stability and sustained profitability.
Where are logistics real estate investments concentrated in Italy?
The northern regions such as Lombardy, Veneto and Emilia-Romagna are the main logistics hubs in Italy, contributing 60% of national investments thanks to their advanced infrastructure.
What are the advantages of sustainability in logistics real estate?
Green buildings attract companies oriented towards responsible practices, improve operational efficiency and increase the value of assets over time, offering competitive advantages to investors.
How to start investing in logistics real estate?
One can start by buying warehouses or logistics centres in order to rent or resell them. Alternatively, you can enter the market through real estate shares or specific ETFs without buying physical property.
What role do advanced technologies play in logistics investments?
The integration of innovative technologies improves the operational efficiency of logistics facilities and attracts reliable drivers. Automation and digitisation are key to increasing the asset value of assets.
What makes AKNO Group a leader in logistics in Italy?
AKNO Group combines over 50 years of experience with innovative and environmentally sustainable projects located in the main hubs of northern Italy. They offer tailor-made solutions that guarantee stable profitability thanks to competitive leases and very low vacancy rates.
