Netherlands’ logistics market resilient to adverse pressure

Both demand for logistics real estate in the Netherlands and the fundamental drivers of demand currently remain in place, but according to René Buck, President & CEO, BCI Global, some slow down could be expected due to the level of inflation and if a recession occurs.

“What we also see, which makes logistics real estate an interesting market in the Netherlands, is that supply is difficult,” Buck added. “The number of new, green, industrial areas dedicated to logistics real estate is rather limited, so the pipeline of new opportunities is drying up.”

Buck said that there is also a discussion about nitrogen in the Netherlands, which will influence the building permit procedures.

Talking to Real Asset Insight’s Richard Betts, Buck said that one reason that the logistics market seems to be somewhat decoupled from the wider economy is that the dip in consumer expenditure increases the amount of stock that brands need to store in warehouses.

“All the warehouses are so full that brand owners and manufacturers have to lease additional buildings,” Buck said.

“During a recession people probably don’t buy as many new laptops, smartphones or cars as in a very positive environment. On the other hand, people keep on buying food, people need washing material to do the laundry, so there is still a lot of stuff which is in warehouses.”

Please click on the video above to watch the full interview or listen to the podcast below.