• Latest
  • Trending
  • All
E-commerce boom makes warehousing the focus of Blackstone investment

E-commerce boom makes warehousing the focus of Blackstone investment

November 10, 2019
These inventory trackers will notify you when hard-to-find items are back in stock

These inventory trackers will notify you when hard-to-find items are back in stock

April 15, 2020
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

April 14, 2020
Mzee Moi’s Ksh10B Gift to Gideon

Mzee Moi’s Ksh10B Gift to Gideon

April 14, 2020
Covid Knights: Corporate social purpose in the time of COVID-19

Covid Knights: Corporate social purpose in the time of COVID-19

April 14, 2020
How Tesla And BMW Are Leading A Supply Chain Renaissance With Blockchain

How Tesla And BMW Are Leading A Supply Chain Renaissance With Blockchain

April 14, 2020
Last Mile Delivery Market Worth Observing Growth | UPS, FedEx, SF Express

Last Mile Delivery Market Worth Observing Growth | UPS, FedEx, SF Express

April 14, 2020
LATAM Cargo strengthens European cargo links

LATAM Cargo strengthens European cargo links

April 14, 2020
Ford making reusable hospital gowns from airbag materials as efforts against coronavirus expand

Ford making reusable hospital gowns from airbag materials as efforts against coronavirus expand

April 14, 2020
Don’t Sweat NBC’s Decision to Cut Back on Television Ad Inventory

Don’t Sweat NBC’s Decision to Cut Back on Television Ad Inventory

April 14, 2020
Software firms sharpen focus on AI, big data as IT spending drops

Software firms sharpen focus on AI, big data as IT spending drops

April 14, 2020
Navigating turbulent times in your supply chain (TL:DR version)

Navigating turbulent times in your supply chain (TL:DR version)

April 14, 2020
  • Supply Chain
  • Logistics
  • Warehousing
  • Procurement
  • Shipping
  • More
    • Strategic Sourcing
    • Spend Analysis
    • Inventory
    • Contact Us
No Result
View All Result
United States International Supply Chain Commission
United States International Supply Chain Commission
Home Warehousing

E-commerce boom makes warehousing the focus of Blackstone investment

by usiscc
November 10, 2019
in Warehousing
0
E-commerce boom makes warehousing the focus of Blackstone investment
492
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

“Anything is really possible,” Kathleen McCarthy, Blackstone’s co-head of real estate, said. “There’s just less competition.”

Blackstone chief executive Steve Schwarzman has long preached the virtues of scale. In a market where real estate assets “feel fairly fully valued in a lot of places,” that’s an added advantage, McCarthy said. The New York-based firm can deploy more capital faster and with greater certainty.

Including two deals since June for a total of almost $25bn (€22.7bn), Blackstone has acquired a billion square feet of warehouse space in the past decade.

McCarthy said logistics remains her highest-conviction bet, followed by offices and rental housing in so-called innovation centres such as Seattle and Stockholm, and “high-quality” travel destinations in coastal markets.

Blackstone’s focus on e-commerce has shifted from large regional warehouses to smaller spaces in densely populated cities, as that’s what customers such as Amazon need to guarantee next-day or even day-of deliveries. By buying up multiple locations in the same areas, Blackstone gains control over supply.

“We see technology totally transforming the way goods move from businesses to people,” said McCarthy. “Our clients want to be as close as they can get to the ultimate consumer.”

There is at least one serious competitor, Prologis, which owns even more warehouse space in the US, and has announced $14bn of logistics deals in the past four months.

E-commerce isn’t the only hot spot in real estate. Low interest rates have spurred demand for everything from nursing homes to apartment buildings.

One consequence of all that competition for assets is ever-rising prices and, in residential areas, the soaring cost of housing. It’s such a problem on the US west coast, including in technology centres where Blackstone has been buying up rental properties, that Microsoft, Google, Facebook and Apple have committed a total of $5bn to alleviate the shortage of affordable space.

While local governments in cities such as San Francisco have focused on price as the main barrier to affordability, McCarthy said the real issue is lack of supply and barriers to construction.

“We can be a much bigger part of the solution,” she said. “We’re evaluating a number of opportunities that would help us really add supply.”

As of September 30, Blackstone had $157bn of investor capital in its real estate business. Its two classes of real estate funds, Opportunistic and Core+, generated gross returns of 13.6pc and 8.7pc respectively over the previous 12 months.

Sunday Indo Business

Share197Tweet123Share49
usiscc

usiscc

  • Trending
  • Comments
  • Latest
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
These inventory trackers will notify you when hard-to-find items are back in stock

These inventory trackers will notify you when hard-to-find items are back in stock

April 15, 2020
‘Significant opportunity’ in Asia as supply chain integrates, consolidates

‘Significant opportunity’ in Asia as supply chain integrates, consolidates

January 3, 2020
These inventory trackers will notify you when hard-to-find items are back in stock

These inventory trackers will notify you when hard-to-find items are back in stock

0
Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2016–2024 – ZMR News Reports

Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2016–2024 – ZMR News Reports

0
PHOTOS: Ottawa firefighters respond to warehouse fire

PHOTOS: Ottawa firefighters respond to warehouse fire

0
These inventory trackers will notify you when hard-to-find items are back in stock

These inventory trackers will notify you when hard-to-find items are back in stock

April 15, 2020
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

April 14, 2020
  • Privacy Policy
  • Terms of Use
  • Disclaimer
  • DMCA
  • Contact Us

Copyright © 2021 United States International Supply Chain Commission (usiscc.org)

No Result
View All Result
  • Supply Chain
  • Logistics
  • Warehousing
  • Procurement
  • Shipping
  • More
    • Strategic Sourcing
    • Spend Analysis
    • Inventory
    • Contact Us

Copyright © 2021 United States International Supply Chain Commission (usiscc.org)

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT