Ares US Real Estate Opportunity Fund III
Industrial Poised to Outperform
Logistics and last-mile distribution demand bolstered by acceleration of e-commerce trends
E-commerce as a % of Retail Sales
Pandemic Accelerates Build Out of e-Commerce Platforms
40%
30%
20%
10%
0%
6.0%
ā
2000
7.3%
2005
9.5%
2010
12.8%
2015
14.2%
2016
15.2% 15.1%
2017
2018
17.4%
2019
22.1%
June 2020
39.0%
Source: Census Bureau, CBRE as of June 2020.
Pandemic forecasted to accelerate continued growth in e-
commerce, driving demand for regional distribution and last-
mile facilities
2030 Forecast
Net Industrial Absorption (100,000,000 SF)
Industrial Demand On Pace to Outperform Past Recessions
350
250
150
50
-50
-150
-250
1985 1990 1995
Source: Costar as of Q2 2020
2000 2005
2010
G
For illustrative purposes only. Forecasts are inherently limited and should not be relied upon as indicators of actual or future results.
Confidential - Not for Publication or Distribution
28
2015 2020F
Industrial demand expected to be far stronger than in past
downturns
Positive secular trends have accelerated due to COVID-19 and have muted any adverse impacts to rents and values, increasing relative investor
demand for the industrial sector
Ares will continue its strategy of investing in core-quality distribution assets, with an emphasis on bulk logistics and last-mile facilities that cater
to e-commerce demand
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