The war in Ukraine has led to massive increases in energy prices and, consequently, massive increase in the prices of steel and concrete this has been somewhat mitigated by the level of user demand for logistics space according to Patrick Frank, country director, Germany, GLP.
But, the rent increases this demand precipitates is “helping us to overcome, at least to some extent, this massive cost increases scenario”, Frank adds.
Clients are also becoming more demanding in terms of buildings’ energy efficiency, sustainability and cost efficiency. “That basically means, landlords and developers have to add on another 10% of construction costs by installing energy efficient heating systems, additional layers of insulation, highly efficient lighting systems,” Frank said.
“But we are very well convinced that all these items pay off in the long term,” he said.
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