The Covid-19 pandemic and Brexit are both driving a rise in demand for space from European logistics occupiers, according to a new survey by CBRE and market analysis company Analytiqa.
Half of online retailers in Europe predict they will need additional logistics space in the UK because of Brexit, with a further 40% suggesting they will also need extra space in EU territories.
The European Logistics Occupier Survey, which polled more than 100 of the largest European logistics occupiers, found 47% of tenants highlighted a long-term need for flexible storage space.
Additionally, 36% of occupiers are planning to “accelerate” their plans to ensure logistics facilities are ready to cope with increased demand from the rapid growth of the online channel.
Occupiers also showed a willingness to explore non-traditional locations for expansion. A total of 64% of online retailers said they would consider non-traditional locations, alongside 44% of all respondents.
CBRE said delivery time to customers remains one of the most important factors influencing location decisions, with urban locations increasing efficiencies and shortening supply chains. Of the online retailers, 64% underlined expansion in urban locations as a “high priority”.
Tasos Vezyridis, senior director at CBRE’s research team, said: “Recent global events have shone the spotlight on logistics and alerted people to the importance of global supply chains. These trends have accelerated demand from logistics occupiers and placed greater importance on issues such as labour cost and availability, urban logistics, lease costs and flexibility.
“These trends, in turn, impact investor decision making and we anticipate high investor demand, especially in emerging logistics hubs, over the coming year as a result of these strong occupier fundamentals.”