It probably goes without saying that COVID-19 accelerated a retail renaissance. For shoppers, it means more time spent at a digital checkout, rather than a physical one. However, for ASX retailer shares, the repercussions have extended the foundation of commerce — the humble warehouse.
Yesterday, Premier Investments Limited (ASX: PMV) Retail CEO Richard Murray described industrial land as "liquid gold". Prompting a question among investors: which ASX shares have some of that liquid gold in their hands?
These ASX property shares are loaded with land
During the summit, Murray expressed his perspective of an incredible shift toward online shopping which has bolstered the demand for e-commerce infrastructure.
This sentiment was shared by Big W managing director Pejman Okhovat, with him describing a challenging situation in Auckland, New Zealand. According to Pejman, warehouse vacancy rates in Auckland were sitting around 0.5% when he recently visited.
In the world of e-commerce, warehouses are an essential building block in the supply chain. Basically, they allow retailers to store, pick, pack, and send products efficiently.
According to Australia Post's February 2022 edition of its Inside Australian Online Shopping e-commerce update, online shopping has continued to surge in the last year. In fact, on a year-over-year basis, e-commerce purchases increased by 16.6%.
In turn, ASX property shares with exposure to warehousing assets could be in the spotlight. These include Goodman Group (ASX: GMG), Dexus Property Group (ASX: DXS), and Mirvac Group (ASX: MGR).
How do the big dogs of property compare?
Goodman Group is the largest ASX-listed property name there is. However, it hasn't segmented its business clearly into the different real estate segments that it operates in recently, so it is difficult to say its involvement in the industry of warehouses.
Although, we do know that the property giant is working with Amazon.com Inc (NASDAQ: AMZN) as it expands into Australia. For example, the world's largest e-commerce company is working with Goodman to open a sorting centre in Melbourne this year. The square metreage of the new site will almost be equal to the Melbourne Cricket Ground.
Meanwhile, Dexus informed investors in its half-year presentation that its industrial portfolio is now worth $11 billion. According to the ASX share, e-commerce operators require three times the space of a regular retailer.
Likewise, Mirvac highlighted its push forward in the industrial market as it benefits from e-commerce. Though, this segment only makes up around 4% of the ASX share's external assets and funds under management.
