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Logistics real estate: market trends and developments

Logistics and logistics real estate have a long tradition at the trade fair: atnumerous exhibitor booths and the joint booth “LogReal Campus” you can meet project developers, dealers, investors and logistics partners. An ideal place to get talking to experts and make valuable contacts.

The run on industrial and logistics real estate continues

Industrial and logistics real estate, which has established itself as the third strongest asset class on the commercial investment market, has won over even the most stubborn of critics (source: Colliers).

There are a number of factors that have contributed to the sector’s runaway success, including the ongoing boom in e-commerce and the highly competitive contract logistics sector. The latest market data confirm the strength of the sector’s growth. For example, the letting market set another new record in 2018. (Source: CBRE) The sustained demand for logistics space is also reflected in the total volume of new construction. Having already increased to around 3.9 million m² of new construction in 2017, the figure rose again in 2018 to 4.4 million sqm. (Source: Logivest)

Excess demand in Germany’s most important logistics regions has led to an increase in speculative project development, which would be even higher if more land were available. According to market observers, this trend will continue to intensify unless the supply situation improves.

As a result, attention is turning to the increasing shortage of space and labor. A study from Initiative Logistikimmobilien (Logix), “Standortkompass – Flächen- und Beschäftigungspotenziale in den deutschen Logistikregionen” (Location Compass—Space and Employment Potentials in Germany’s Logistics Regions; only available in German) paints a very clear picture of the current situation: No logistics region in Germany has both high space and labor potential. As a result, all major logistics locations are already facing real challenges and serious bottlenecks.

An award, dialog and research at EXPO REAL

Many of the industry’s most prominent companies joined forces to launch Initiative Logistikimmobilien (Logix), which provides a platform for dialog, research and improving the image of logistics real estate. At this year’s EXPO REAL, Logix will be presenting a new publication that includes interviews with municipal decision-makers talking about their experiences of setting up new logistics parks. In addition, the “Let’s Talk Logistics” panel discussion provides an opportunity for exciting discussions and a variety of perspectives. This year, the title is “No space, no permits, no logistics real estate—how can we achieve a breakthrough?” (October 8, 15:00–15:30, Hall C1, Intelligent Urbanization Forum). Another major highlight is the traditional presentation of the Logix Award on EXPO REAL’s first evening. The award ceremony will honor the most outstanding logistics project developments of the last two years.

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