Competition for logistics space in Europe heats up

Competition for logistics space in Europe is heating up with record take-up levels (11.9 million square meters/128 million square feet) and downward pressure on yields reported across the board in first half 2019, according to Savills latest European logistics report.

Data from the international real estate adviser shows that rising levels of e-commerce, across all European markets tracked by Savills, has helped to create unprecedented levels of demand from occupiers across Europe.

In markets such as the United Kingdom, the Netherlands, Germany and France, where over 10 percent of all retail sales are made online, take-up levels stood at 1.5 million square meters (16 million square feet), 2.0 million square meters (22 million square feet), 2.9 million square meters (31 million square feet) and 1.4 million square meters (15 million square feet), respectively, as growing demand from retailers continued to shape the upwards trajectory.