European urban logistics set for growth as online share of retail market grows
The online share of the E.U. retail market has risen from 7 percent to 9 percent over the past two years, an increase that will provide further support to the urban logistics sector, according to Savills Investment Management.
“The expansion of online retail across Europe is causing a rethink of many logistics networks as e-tailers seek to distinguish themselves through increasingly rapid delivery,” said Kiran Patel, CIO at Savills IM, in a statement. “In particular, urban distribution centers within city limits will become crucial to enabling rapid delivery to customers.”
In its European Outlook report, Savills IM highlights urban logistics as one of its preferred European investment sectors, especially in markets where Internet sales as a proportion of total retail sales are at, or about to exceed, the 5 percent threshold.
In its analysis, Savills IM forecasts millions more square feet of logistics space will be needed to service the growth in