Sustainability and resilience are the most important criteria for attractive investments
The logistics market is undergoing a transformation process
The logistics industry is reorienting itself: local supply chains are increasingly replacing globalisation, while online retail is registering growing demand for logistics space close to cities. Digitalisation and AI are optimising processes through technologies such as IoT (Internet of Things) and autonomous systems. ESG criteria and sustainability are also gaining in importance - as a result, certifications are also becoming increasingly important.
Square. Clever. Green.
Sustainable logistics properties pay off.
Despite the current challenges in the property market, logistics properties remain robust. The persistently high demand is being met by a low supply of modern, energy-efficient space, which is increasing the pressure on rents. However, increasing regulation is also increasing the pressure on developers, users and investors to implement ESG standards in their properties. Photovoltaic systems and heat pumps for generating sustainable energy and heat are now part of the basic equipment of modern logistics properties.
It is true that the necessary technical building equipment is initially cost-intensive. However, current analyses show that energy efficiency not only pays off in terms of climate protection, but also has a positive impact on operating costs and the value of properties in the long term. According to experts, ESG criteria will influence the purchase prices that can be achieved for logistics properties in the future. According to an analysis by Cushman & Wakefield, investments in green technologies pay off after an average of 7.5 years. This is the conclusion of the Real I.S. Research team - you can read the full article on the topic here.
Globalisation trend on the decline again
- Derisking in the supply chain.
Growth in demand near the production site and increase in decentralised supply chains expected - Strong growth opportunities for emerging industries (e.g. battery production) are driving demand for logistics space.
- Strategic cooperation between all logistics players due to global structural change.
Demand for logistics space close to cities continues to increase
- Long-term overall growth in online retail expected, resulting in sustained demand for storage/distribution space close to customers
- Availability of space, legal framework, environmental regulations and traffic remain key challenges.
Logistics is increasingly relying on AI and digitalisation
- Digital networking of the supply chain and utilisation of innovative technologies for supply chains, including through the "Internet of Things"
- Realising efficiency gains through autonomous logistics (e.g. warehouse robots, self-driving vehicles and forklift trucks).
Increasing ESG requirements in the logistics sector
- Sustainability and environmental friendliness are becoming increasingly important in the demand for logistics space.
- Increasing importance of certifications.
The window of opportunity for logistics investments is wide open
The best time is: NOW
European logistics markets: Declining new buildings slow down vacancies
European logistics markets: high demand and tight supply support rental growth
Logistics property yields in Europe: prime yields at 6-year high - falling yields/increasing purchase prices expected in the medium term
