T
he global real estate investment trust (REIT) market is poised for a significant surge, with Technavio predicting a growth of USD 350.2 billion from 2024 to 2028. This expansion is driven by the escalating demand for warehousing and storage facilities, as e-commerce continues its relentless march forward.
As online shopping gains traction, major players like Amazon, Alibaba, and IKEA are adapting by establishing their own logistics networks. In a notable example, Alibaba's Cainiao subsidiary unveiled plans to build a network of smart warehouses in Southeast Asia, catering to the region's burgeoning e-commerce market.
The rise of self-storage as a service is also contributing to the growth of the REIT market. However, this trend is threatened by vertical integration efforts from e-commerce companies, which could potentially disrupt the market dynamics.
REITs offer individual investors a unique opportunity to tap into commercial real estate investments, providing a steady income stream through publicly traded and non-traded options. As the global e-commerce landscape continues to evolve, REITs are likely to remain an attractive investment choice for those seeking stable returns from real estate assets.
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