Window of opportunity now as logistics demand “set to rise”

Demand for logistics is set to increase even further in the future, delegates heard at Real Asset Media´s Locations of the future: key trends driving logistics real estate briefing, which took place this week at Transport Logistic in Munich.

¨There is an 18-month window of opportunity now to build logistics assets¨, said Raimund Paetzmann, Managing Partner, logivalue. ¨After that it will be impossible to find land, because competition will only become more intense.¨

Several factors are contributing to the resurgence of logistics as a strategically important sector, including the competition for land and power from data centres, the restructuring of supply chains and the nearshoring trend, and the renewed focus on defence capabilities across Europe.

¨The regionalising of supply chains is a clear trend, because companies want to be closer to their markets¨, said Paetzmann. ¨This will benefit low-cost countries like Portugal and also CEE countries.¨

If Poland is a favourite choice for nearshoring, the Czech Republic is emerging as a centre for automation and Romania is also sought-after for its proximity value.

¨Hungary could play an important role as a defense and R&D cluster, but that depends on politics, the government will have to decide which side they´re on¨, Paetzmann said. ¨Poland will also be the base for the rebuilding of Ukraine, hopefully in the not too distant future.¨

In many European countries, including core logistics locations like Germany, France and the Netherlands, data centres are already in fierce competition with logistics for every piece of land that becomes available as well as for all the power that is available.

¨Data centres are land-hungry and power-hungry, it is not certain that we can accommodate them¨, he said. ¨It is a peculiarly European problem, because there is plenty of land available in the US or in China.¨

Paetzmann´s plea is for local authorities to recognise the importance of logistics to the economy and give the green light to new developments that are much needed, whether for industrial production or e-commerce or new defense industries.

¨Logistics sits at the heart of Europe´s new industrial agenda and its resilience is crucial¨, he said. ¨Every hectare of and is strategic and must be prioritised.¨