Logistics real estate: trends and challenges

September 9, 2019

Although the German logistics real estate market developed less dynamically in the first half of 2019 than in the same period last year, the sector is still booming. The non-stop growth of the e-commerce sector is the main reason for this success. The demand for suitable logistics facilities is growing rapidly as a result of online trading. Developers are focusing more and more on urban real estate.

© shutterstock / Alzay
The evolution of the logistics market is being driven by the comprehensive change in distribution requirements in urban environments.

Need for innovation in urban logistics

The evolution of the logistics market is being driven by the comprehensive change in distribution requirements in urban environments, which pose challenges for logistics service providers and developers alike. Due to the increasingly demanding expectations of consumers, proximity to customers is becoming increasingly important, especially in the B2C segment. At the same time, there are only a few areas in Germany’s conurbations where distribution centers and micro-hubs can be built to meet demand. In addition, public perceptions of logistics real estate tend to be rather negative, which means that other asset classes such as residential and office real estate are preferred.

Research, dialogue, communication: Logix at EXPO REAL 2019

The current challenges, especially in the field of urban logistics, require a complex toolbox of solutions. While developers have to devise innovative concepts, an intensive communication process with the general public is also needed in order to raise awareness of the role and significance of logistics real estate.

The Logix Initiative is making a valuable contribution to increasing public acceptance and improving perceptions of logistics real estate with research and a continuous dialogue platform. This year’s EXPO REAL will be hosting “Let’s Talk Logistics,” a panel discussion involving industry experts, who will be exploring the topic “No space, no permits, no logistics real estate—how can the breakthrough be achieved?” (October 8 from 15:00 to 15:50 in Hall C1, Intelligent Urbanization Forum). In addition, Logix will be presenting the 4th Logix Award for outstanding logistics real estate developments in Germany.

EXPO REAL 2019 will highlight the key role of logistics real estate in the overall commercial real estate market. For the first time, exhibitors in the logistics sector will mainly be gathered in one hall where they can pool their expertise for all trade fair visitors.

About Logix

Logix (Initiative Logistikimmobilien) aims to increase acceptance and improve perceptions of logistics hubs among industry experts and the general public. Experts already unanimously agree that logistics, including the supporting storage, handling and distribution centers, are fundamental prerequisites for a functioning economy and supply of the population. However, the status of Germany’s third largest economic sector does not match its economic importance in the public eye.

To counteract this negative public perception, the Logix initiative was launched in 2012 to actively create opportunities for dialogue and to initiate studies and research work. The initiative also presents the Logix Award for the best logistics properties in Germany every two years. The award is presented at the EXPO REAL in Munich.

Members of the Logix initiative include: Aberdeen Asset Management Deutschland, Bayern LB, Bremer Bau, CBRE, Colliers, Deka Immobilien, Deutsche Pfandbriefbank, Dietz AG, Deutsche Logistik Holding, Expo Real, Fiege, Flex Lighting Solutions, Four Parx, Garbe, Goldbeck, Goodman, greenfield development, GSE, GSK Stockmann, HVB-UniCredit, Immogate, Köster Bau, Lidl, Logicor, Logivest, Nuveen Real Estate, Panattoni, pfenning logistics, phase5, Realogis, RLI Investors, Savills Investment Management, Segro, Robert C. Spies, Verdion and Wisag.

Partners include the German Association of Towns and Municipalities (DStGB) and ZIA (German Property Federation). Exclusive media partners are Immobilien Zeitung, Deutsche Verkehrs Zeitung and Logistik heute.

Jens Tosse

CEO of teamtosse GmbH