.jpg "Logistics and Real Estate 2019")
On Demand and Short Supply.
Everyone is talking about logistics and logistics real estate while demand for space, building activity and investment volumes in this sector are at a record high. As the macro-economic uncertainty increases, we have naturally wondered increasingly whether logistics real estate is here to stay as a permanently viable asset class. Or was logistics real estate just a fad in times of low interest rates and of lacking investment alternatives? Will the trend reverse itself as soon as the parameters on the capital market shift and the cycle begins to slow? Will societal and technological transformations see alternative production and distribution concepts emerge that will influence logistics services, too, and reduce the demand for logistics facilities?
So, these are some of the main issues that the competence centre for logistics and real estate has been studying in 2019.
The regional demand for logistics facilities going forward plays a key role in appraising the long-term viability of logistics real estate. Strong future demand for logistics services will be matched by a growing demand for accommodation that lends itself to logistics purposes. In the current study, the appraisal of the floor space requirements to be expected in future is used to assess a potential vacancy risk for new-build developments on the regional level. It also shows which regions have a higher potential for additional new-build completions.