Why Invest in Supply Chain Real Estate?

Commerce is the lifeblood of the global economy, and the supply chain is its circulatory system. Logistics real estate is the often-overlooked infrastructure that makes distribution at scale possible. Amazon could not exist without trillion-dollar investments in warehouses and cold storage facilities and private airports. The centrality of logistics to global commerce and its underlying demand drivers make supply chain real estate an attractive business.

Nominal Sales

Supply chain real estate is undervalued relative to the market maturity of eCommerce.The American economy is rapidly moving online, driving an evolution in retail and boosting supply chain real estate. In the past 5 years, digital commerce has grown 140% to a $2.4 trillion market opportunity, yet the supply of real estate infrastructure to meet this demand has increased only 25%. This enormous supply–demand imbalance will drive increasing revenue in our target asset classes for the next decade.

Surging eCommerce

Demand has led to a shortage of supply chain real estate as same-day delivery and just-in-time distribution use 3 times more storage space because:
1. All inventory is stored in a warehouse rather than on the shelf
2. Online storefronts offer greater product variety
3. Variable sales patterns require deeper inventory levels
4. Individual parcels require more space than large pallets

Noyack Logistic Income (NLI) is purpose-built to capitalize on the growth of eCommerce by investing in warehouses, cold storage, mobility hubs, and healthcare properties. Our definition of supply chain is : any real estate infrastructure that supports the storage or delivery of a product or service. It is our belief that these asset classes offer asymmetric risk—reward potential.

NLI assesses current market conditions to identify attractive, yield-generating assets in the near term. Over the long run, we intend to tap into unrealized revenue opportunities by anticipating and repositioning assets for future supply chain needs as the adoption of eCommerce continues to accelerate.

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