Leasing activity in the logistics property market declined in the first quarter of 2020. That decline was already set in motion before the outbreak of the corona crisis.
This is according to a research report by real estate consultant Savills. The take-up of logistics property had already started to decline somewhat before Covid-19. That decline was caused by the nitrogen ruling, which resulted in fewer new projects being delivered. The corona crisis brought housing decisions to a standstill, causing a further drop in leasing activity.
Read also: More vacancies in logistics property
Difference between logistics service providers and online retailers
Savills sees a big difference between different types of occupiers. Online retailers and supermarkets are flourishing, while logistics service providers are struggling with declining turnovers. The property consultant expects the increasing demand from online retailers to somewhat offset the falling demand from logistics service providers.
"Although rental growth will be limited this year, we do expect the market to remain tight in logistics hotspots in particular in the coming year, due to low vacancy rates and relatively limited new supply," predicts Niek Poppelaars, co-head of Logistics & Industrial at Savills Netherlands.
