What is the typical NOI margin for logistics real estate?

The typical Net Operating Income (NOI) margin for logistics real estate falls within the range of 75-85%. This indicates that logistics properties generally have high operational efficiency and profitability relative to their revenues.

A high NOI margin in logistics is often attributed to several factors, including the demand for modern warehouse space driven by e-commerce growth, streamlined operations, and cost-effective management of expenses. Logistics facilities tend to have relatively low operating costs in comparison to other property types, such as retail or office spaces, which often have higher vacancies and turnover rates.

As such, the logistics sector is positioned to generate substantial income relative to its expenses. This robust NOI margin reflects the sector's stability and attractiveness to investors seeking reliable income streams. The selections representing lower or higher margins are less reflective of the actual performance metrics seen in the logistics real estate market, reinforcing the accuracy of the 75-85% range as the correct response.