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Research - MAY 8, 2020

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Strong value can be found in the European logistics sector, despite COVID-19

by Ludwig Vogel, MPC Real Estate Solutions, and Olaf Bruns, institutional fund management and logistics expert in real estate

The online retail industry is booming. People’s ever-evolving shopping behavior, paired with the COVID-19 pandemic, is resulting in a boost to online sales and, with it, an increase in the demand for logistics real estate, both in Europe and across the globe.

The market value of the European logistics is expected to increase by 3 percent a year, on average, within the next four years, to reach a total of €1.34 trillion ($1.45 trillion). The annual value of the online retail industry in Europe is expected to grow at an even faster rate, with a predicted 6.7 percent average jump from €343 billion ($372 billion) to €454 billion ($493 billion) by 2024. We believe every sale that takes place online requires three times the logistics space that it would in a physical store. The type of logistics space needed must also be taken into account

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