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Transactions - OCTOBER 8, 2019

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European logistics: Completions at record high, but shortage persists

by Andrea Zander

European logistics real estate completions are expected to hit a record high in 2019, according to the "Logistics and Real Estate 2019” study, which was presented at Expo Real together with the consortium partners Berlin Hyp, BREMER, GARBE and Savills.

This is all the more amazing as the major logistics sites suffer from an acute shortage of space — investors and developers are increasingly opting for alternative locations on the periphery. But the construction activity will hardly cover the annual demand of 6.5 million square meters to 7 million square meters (70 million square feet to 75 million square feet) in additional logistics accommodation that was identified.

Also the survey found after many years during which international investors dominated the logistics market, a growing number of domestic companies are becoming aware of the attractive opportunities this asset class offers. The top-20 list of leading investors now includes seven German companies.

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