Demand for logistics real estate is doing well. That is according to figures from the Property Market in View 2015 report recently published by NVM. The figures show that new construction was mainly in demand in 2015, with the number of square metres almost doubling compared to the year 2014.
Overall, demand for logistics property rose by 1.7 million square metres, more than half of which was new construction. This is increase is a record in the logistics industry. Retailers in particular need more square metres than before. The report says: "The year 2015 was a good year for the logistics real estate sector. More than 20 per cent more logistics space was taken up on the open market than the year before. The demand focused largely on the provinces of North Brabant and South Holland. The increase in take-up was mainly accounted for by so-called build-to-suit distribution centres." An additional benefit is the drop in vacancy rates. "At the end of the year, about 2.5 million square metres were for rent or sale, 15 per cent less than at the end of 2014."
Growth continues
Growth has been continuing for some time. In the past eight years, demand for logistics property rose from 19 to 25 million square metres. Here, location is an important choice for logistics providers, not losing sight of logistics costs. The choice is based, among other things, on transport to the sales market and the origin of the goods.
Trend
Vacancy will continue to decrease in 2016 while demand will rise. "More will be withdrawn from the stock and more of the existing supply will be absorbed due to the lack of new construction. As in 2015, the industrial space market will see growth in take-up in 2016, mainly driven by the growth of the logistics sector. Supply will continue to decline."
Less positive is that the Dutch retail market is in a vacuum stemming from uncertainty about the market and future. "The uncertainty about the future of large retail chains and the floor space occupied by them , brittle consumer confidence and the continued growth of internet sales hang like a dark cloud over the retail market. Consequently, a structural recovery of the retail market will certainly not happen. Small and medium-sized cities in particular will continue to struggle."
Editorial LogistiekProfs
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