Commercial real estate watchers are speculating whether the frenetic pace of the booming logistics sector can continue as developers struggle to keep up with ever-increasing demands and investors are hamstrung by a lack of available assets. 

"It was such a phenomenal last year, although I don't think it was entirely unexpected," says Nick Jones, pan EMEA Logistics & Industrial investment director JLL in a recent post. "The pressure on the sector is really due to permanent structural change of supply chains and more goods coming through the consumer front door via e-commerce."

Logistics comprised nearly a quarter of all global commercial real estate investment last year according to JLL, with prime yields compressing to 4.4%. Global demand is also at historic levels, with net absorption reaching as high as 183% in the Asia Pacific region. The sector continues to be attractive to investors thanks to net effective rents, absorption, consumption and the sector's position as a hedge against inflation.