The supply in logistics real estate cannot keep up with the ever-growing demand. As a result, pressure on the user market continues to increase, resulting in rising rents.
So predicts international property consultant Savills in the report 'Logistics Market Update: Logistics rental growth - Temporary trend or new reality?'.
Room for e-commerce growth
While the percentage of Dutch people shopping online is the highest in Europe, e-commerce 'only' accounts for 10.2 per cent of total retail sales in the Netherlands. "This offers room for substantial further growth of e-commerce in the Netherlands, which I believe is going to create increasing demand for logistics real estate in the coming years," says Douglas van Oers, Co-Head Logistics & Industrial at Savills.
Tipping point in rents
Until 2018, logistics property rents remained very stable due to the slight oversupply and the large number of speculative developments. According to Savills, a tipping point has now been reached; land shortages mean that supply in key hotspots will no longer be able to keep up with increasing demand. The company expects the number of new logistics developments to decrease and the vacancy rate to fall even further.
The pressure on the user market is leading to an increase in rents, Savills predicts. The property consultant expects the Dutch market to remain popular with (international) investors in 2019."
