Prospects are bright for the logistics sector, experts agreed at Real Asset Media’s European Logistics: e-commerce, supply chains and investment locations briefing, which took place online this week.
The positives of growth, innovation and limited supply will outweigh the negatives of economic slowdown and lower consumer confidence and demand.
‘There’s opportunity everywhere,’ said Logan Smith, Managing Director, Aevitas Property Partners. ‘I cannot think of a single country in Europe where there are no opportunities in the logistics sector, even in secondary markets that have been neglected. The last three months have really shown what works and what doesn’t and for the first time ever warehouses are being seen as essential infrastructure in a city’.
Germany is by far the top market in Europe and continues to attract more investment than any other, followed by the UK which is experiencing a slight decline. Three other countries – Ireland, France and Italy – are seeing marked increases in investment in the sector.
‘Germany remains the biggest and most attractive market, followed by the Netherlands, but France has been the stand-out place in terms of growth’, said Anita Simaza, Head of Logistics & Industrial, Europe Europe Capital Markets , BNP Paribas Real Estate. ‘We have seen really high volumes of transactions and a lot of cross-border interest in the French market’.
Delegates seemed to agree: in a snap poll conducted by Real Asset Media, 50% of respondents said that Germany was the most likely to provide the best opportunities for logistics after the crisis. CEE came second with 36%, Benelux third with 31% and France fourth with 30%.
‘Looking at a picture taken at night from a satellite, we go where the lights are, to the densely populated areas,’ said Raimund Paetzmann,Vice President Corporate Real Estate, Zalando.
‘As an operator that occupies logistics space our strategy is the same, we go where the lights are,’ said Ben Segelman, Head of Capital Markets UK&I and MLEMEA, DHL Supply Chain. ‘But there is demand away from the cities as well. The market will see massive growth and massive change in the next few years’.
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