A new survey from CBRE shows that Covid-19 remains an important consideration for occupiers and will continue to drive demand for space in Europe. CBRE’s first European Logistics Occupier Survey, in conjunction with Analytiqa, analysed responses from more than 100 of the largest European logistics occupiers with a combined footprint of more than 40 million square metres across manufacturing, online and general retail, supermarkets and third-party logistics.
The survey shows that 47% of respondents highlighted a long term need for flexible storage space, with 36% of occupiers looking to accelerate their plans to ensure logistics facilities are ready to cope with increased demand from the rapid growth of the online channel.
Respondents also showed a willingness to explore non-traditional locations, outside of the core logistics hubs, to accommodate their expansion. A total of 64% of online retailers admitted that they would consider non-traditional locations, with 44% of all respondents saying they would do so.
The survey also confirms that urban logistics is becoming increasingly important, with 64% of online retailers suggesting expanding in urban locations is now a high priority. This trend is reflected in the fact that delivery time to customers remains one of the most important factors influencing location decisions, with urban locations increasing efficiencies and shortening supply chains.
Ninna Therkelsen, Head of Advisory and Transaction Services in Denmark comments on the results: "We can clearly feel the trend in the demand for urban logistics centers. Both in relation to "built to suit" and leases that are already under construction and can be taken over more quickly. A few Danish examples that currently underline this demand, is with the ongoing projects E20 Park in Solrød, Denmark, which we rent out in collaboration with Verdion / Aviva, as well as MG Parc Greve Distribution Center (GDC), which we rent out for MG Real Estate and where a large part of the square meters has already been rented out."
Krista Ruigendijk, Head of Advisory & Transactions in Finland also confirms the trend for Finland: “In Finland Urban logistics will surely follow the trend. The limited amount of available land zoned for logistics purposes in the Helsinki metropolitan area pushes for creative solutions – in particular for large scale distribution centres. There is, however, a definite increase in demand for build-to-suit options. As an example can be mentioned YIT’s recently announced construction for the 15,000sqm Postnord logistics center in Vantaa due to open in H2/2022.
Location and accessibility remain the most important factors, but we have seen the requirement for sustainability as an increasingly important requirement for users. This will, no doubt, lead investor decision making in the near future.”
Moreover, according to the survey, 50% of online retailers in Europe believe they will need additional logistics space in the UK as a consequence of Brexit, with a further 40% suggesting they will also need additional space in the EU.
Keep your eyes on this blog for frequent updates. Enjoy the report which can be downloaded here.
