NL logistics’ attention switches from big box to older sheds

As in most countries, the logistics market in the Netherlands’ has slipped back. There are challenges such as the shortage of supply, a lack of land on which to build new stock, a shortage of electrical power, the nitrogen issue and a political environment that is difficult for new development, explained Niek Poppelaars, co-head logistics and industrial, Netherlands, Savills.

“Therefore what we see is new supply is not coming to the to the market and vacancy levels are really really low – around 2%,” he said.

“The core segment of the market, due to the relatively low yields, is still pretty slow. But the higher yielding value-add part of the market is pretty active,” Poppelaars said.

The search is on for rental reversion potential and there’s a shift of focus from large-scale new big box developments to more smaller ogistics and industrial assets, he said.