2.5 million square metres of logistics space was leased or sold in 2018, up 12.5 per cent from record year 2017. Because existing supply does not meet modern quality requirements, users often diverted to new construction.
This is according to figures from Dynamis, umbrella organisation of real estate companies. Due to solid economic growth and booming trade, a lot of logistics property was taken up last year, with the market flourishing especially in Rotterdam, Tilburg-Waalwijk, Venlo-Venray and West Brabant. Outside the logistics hotspots, a lot of dynamism was visible in emerging regions such as Twente and Rivierenland.
Existing supply is not satisfactory
According to Dynamis, a significant proportion of the existing supply does not meet current quality requirements. For example, the clear height in two-thirds of the properties on offer is lower than the new-build standard of 12.2 metres. As a result, many users are diverting to new construction; almost half of the parties that moved in 2018 opted for a new-build project.
Foreign labour for staff shortages
The gap between demand and available supply is an obstacle to future growth, Dynamis believes. That impediment is reinforced by shortages in the labour market. In two years, the number of vacancies in the logistics sector has more than doubled. Dynamis sees the influx of foreign labour as a short-term solution.
Less economic growth
Lower economic growth will also weaken demand for logistics real estate, the umbrella organisation predicts. Despite the softening, momentum in this real estate sector remains at a high level. However, political relations on the world stage pose a risk for internationally operating logistics players.
