Netherlands logistics faces headwinds without fear

Despite the energy crisis and a potential recession that may reduce demand the supply of logistics real estate in the Netherlands is so limited that the long-term outlook for the sector “is still very, very strong,” according to Sander Breugelmans, senior vice president and head of Northern Europe of Prologis.

“The value proposition for logistics real estate in the Netherlands is still really good,” he added.

He said that there is still continued demand from online shopping because since Covid more and more people started ordering online. Also, many occupiers have endured supply chain disruptions and want to ensure that they have the goods to deliver to consumers and are building up bigger inventories, further increasing demand for warehouse space.

“At the same time, land supply is starting to dry up, construction costs are starting to increase so it’s harder and harder to create new logistics real estate. With that we see an upward trend in logistics real estate brands and also in logistics real estate values.”

Breugelmans said that because Prologis is a long-term holder of its real estate, “we really look at the long-term income potential, and there we still feel quite good about the sector”.