Executive Briefings

Logistics Real Estate Demand Increase Predicted Over Next Two Years

European occupier appetite for industrial and logistics property is expected to rise significantly in the next two years, according to a survey of senior property investors, developers and occupiers conducted by CBRE.

Logistics Real Estate Demand Increase Predicted Over Next Two Years

In the opinions of 81 percent of the industry's top professionals, growth in e-commerce activity and the associated impact on the supply chain, which includes warehouse storage and logistics property, means that the need for warehouse space will rise.

The survey also identifies third-party logistics operators and retailers as important sources of demand for logistics space.

The growth in online retailing is already a strong driver of leasing activity in the logistics sector, with impacts on both the large national and international warehouse markets as well as smaller urban or near-urban facilities. This trend has had a substantial impact on logistics leasing activity over the past two years in some European markets, including Germany, the Netherlands and the UK. For their part, Germany and Central and Eastern Europe are expected to witness the biggest rise in demand for space reflecting the relatively strong economic position of these markets. Thirty-four percent of those surveyed think that strongest growth in logistics occupier demand growth over next two years will take place in the CEE, with Poland being an outright leader.

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In the opinions of 81 percent of the industry's top professionals, growth in e-commerce activity and the associated impact on the supply chain, which includes warehouse storage and logistics property, means that the need for warehouse space will rise.

The survey also identifies third-party logistics operators and retailers as important sources of demand for logistics space.

The growth in online retailing is already a strong driver of leasing activity in the logistics sector, with impacts on both the large national and international warehouse markets as well as smaller urban or near-urban facilities. This trend has had a substantial impact on logistics leasing activity over the past two years in some European markets, including Germany, the Netherlands and the UK. For their part, Germany and Central and Eastern Europe are expected to witness the biggest rise in demand for space reflecting the relatively strong economic position of these markets. Thirty-four percent of those surveyed think that strongest growth in logistics occupier demand growth over next two years will take place in the CEE, with Poland being an outright leader.

Read Full Article

Logistics Real Estate Demand Increase Predicted Over Next Two Years