Publications

- February 1, 2022: Vol. 16, Number 2

To read this full article you need to be subscribed to Institutional Real Estate Europe

Supply chain disruption boosts emerging logistics hubs

by Marek Handzel

Emerging logistics markets in Europe stand to further benefit from changes in supply-chain plans over 2022.

One of the new strategies being employed by suppliers include holding more inventory. Known as “safety stock,” this approach requires positioning of warehouses closer to large population concentrations to reduce shipping costs. CBRE’s EMEA 2021 Logistics Occupier Survey indicates that approximately one-third of logistics occupiers have a preference for this approach. Other strategies include diversifying product sourcing, shifting ports of entry, and nearshoring or reshoring of manufacturing. These changes are key factors in industrial take-up in 2022, says the consultancy.

“Vacancy rates are at record lows in most European countries and the market cannot produce enough new warehouse stock to meet demand and alleviate congestion,” says CBRE. “The combination of this lack of inventory and the pandemic-fuelled disruption in the flow of goods is

Forgot your username or password?