Current Dynamics
Europe: according to Jones Lang LaSalle, in 2022 alone, the demand for warehouse and logistics real estate in Europe increased by 12%. Germany and France showed growth rates of 14% and 10% respectively. This trend was driven by the growth of online shopping, the automation of warehouse processes, and the expansion of infrastructure for rapid goods delivery.
Asia: in China, as per CBRE, there was a growth of around 15% in 2022, which is linked to the active development of e-commerce. It's also worth noting that infrastructure projects and the expansion of port logistics in the region stimulated the demand for warehouse spaces.
North America: demand in the USA and Canada grew by 9% and 8% respectively. The main drivers of this growth in the USA are technological innovations in the logistics sector, the expansion of fast delivery networks, and the active development of small and medium-sized businesses. In Canada, the growth was spurred by an increase in exports and modernization of transport infrastructure.
Factors Driving Demand
E-commerce: the rise of online shopping indeed contributes to an increased need for warehouse spaces. By 2022, global sales in the e-commerce sector rose to $4.5 trillion, which is 20% higher than in 2021. This not only amplifies the demand for warehouse areas but also changes their configuration, emphasizing quick product picking and "last-mile" logistics.
Supply chain optimization: as transport routes become more complex, companies are actively seeking ways to improve their logistics systems. This fact stimulates the formation of large logistics hubs capable of quickly processing and shipping massive batches of goods.
Technological advancements: modern warehouses are becoming less and less like the traditional ones. Today, they are equipped with automated management systems, order-picking robots, and high-tech product tracking systems. This creates a need for specialized spaces intended for housing and servicing this technology.
Forecasts for the future
Continued growth in e-commerce: considering the increasing consumption, it is expected that by 2025, the global e-commerce market volume will reach around $6.7 trillion. This trend solidifies e-commerce's position as one of the key drivers for the development of logistics real estate. Given this tendency, there might be an increase in investments in infrastructure for product processing and delivery.
Sustainable logistics: global trends dictate the need for a transition to environmentally friendly and sustainable solutions. This is reflected in the logistics sector: more and more companies are aiming to create "green" logistics centers that adhere to high environmental standards. Such facilities are usually equipped with waste management systems, energy-efficient equipment, and other innovations to reduce the environmental impact.
Technological advancements: modern technologies, including automation and robotics, are actively being incorporated into logistics, necessitating the creation of new spaces adapted for high-tech equipment. In addition, new technologies, such as artificial intelligence, drones, and autonomous vehicles, increase the need for specialized buildings and areas.
Conclusion:
The logistics real estate sector showcases impressive growth rates against the backdrop of global economic and technical changes. The increased interest in online shopping, improved delivery methods, and the integration of modern technologies are the primary catalysts. Given the anticipated expansion of the e-commerce market and the need for automated warehouse solutions, investments in this area promise stable returns. A deep understanding of current trends and swift adaptation to new realities will provide investors with significant competitive advantages.
