Logistics occupiers across Europe are still planning to increase their real estate footprint despite challenging market conditions, according to CBRE’s 2023 European Logistics Occupier Survey.
According to CBRE, 67% of the more than 100 occupiers surveyed planned to grow their logistics footprint, with almost half of this group stating that they planned to do so by more than 10%.
Online retailers remain bullish about their future expansion plans, particularly in less mature markets such as Italy and Spain, despite the overall slowdown in e-commerce growth post-pandemic, while some 78% of third-party logistics providers said they were expecting further business growth over the next two years.
Third-party logistics providers accounted for more than 45% of the total take-up in Europe in Q1 2023.
CBRE said that a growing number of occupiers looking for more space were exploring new locations, with 58% of respondents considering emerging hubs or secondary locations. Cost, access to labour and availability of space are driving location decisions, found the report.
Occupiers looking to reduce their logistics footprint showed a preference to sublease full units (57%) or move to smaller facilities (43%), allowing them flexibility if future plans change.
No respondents said they were looking to exit any European market completely.
Supply chain disruptions were a continuing concern for many respondents, with 72% of occupiers surveyed adopting at least one strategy to minimise supply chain disruption, such as increasing inventory or nearshoring of production or stock.
Real estate challenges were also prevalent, primarily due to the sector experiencing continued undersupply alongside rising costs. As a result, acquisition strategies have evolved, with 43% of occupiers saying they were securing sites in advance of requirements and almost one-third saying they were now partnering with developers and investors to streamline the process.
Jack Cox, head of industrial and logistics for Europe at CBRE, said: “With logistics now a mainstay of the boardroom agenda for many companies, real estate considerations are now business challenges that directly affect revenue and growth.
“As a result, the evolving partnership we are seeing between occupiers, investors and developers is very important and will play a crucial role in supporting the growth strategies of these companies and of the logistics sector going forwards.”
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