UBS Evidence Lab’s catchment analysis on about 640 warehouses (> Access Dataset) suggests ESR and Goodman Group (GMG) have the best warehouse quality (see page 2), with exposure to the highest average purchasing power. These are backed by superior locations (over 70% of their properties are located in top three city clusters by GDP contribution), wide purchasing power coverage, high penetration of third-party logistics (3PL) service points, strong property prices in their locations, and infrastructure nearby. Due to diverged rental performances and oversupply in low-barrier markets, the quality of portfolio has become more important as tenants are willing to pay a premium for a better location (about 5% of total supply chain cost is rent), larger potential for land price appreciation, and densification/redevelopment opportunities.