This week, Savills released the research report 'Spotlight: Logistics property market - the Netherlands'. This report captures the latest logistics real estate market figures. But how do these figures affect the market in practice? In other words, what do we actually see? In this blog we discuss three examples of the visual impact of trends that are shaping the Dutch logistic landscape.
Increasing dominance of Noord-Brabant and Limburg locations
The focus on provinces Noord-Brabant and Limburg is increasing. Almost 60% of all new logistics developments are located in these provinces. Due to the increasing online sales, large scale development opportunities are necessary. Noord-Brabant and Limburg are able to facilitate large lots for relative low land prices. Savills expects Limburg and Brabant to continue to perform well. Not only due to the location and low land prices, but also because they are much more active promoting themselves through international marketing. Although other provinces and countries are starting to follow this trend of active marketing, Noord-Brabant and Limburg remain one step ahead of competition.
From boring warehouse to sexy product
Savills expects a changing shape of distribution centres. In the UK we have seen the first examples of multi-layer and underground centres, such as the recently announced development near Heathrow. It will not be long before this trend reaches the European continent. Currently, we see the appearance of distribution centres becoming more and more attractive. This is due to investors' demand, which would rather add a 'sexy' product to their portfolio than a ‘boring’ warehouse, but above all because of occupier demand. E-commerce distribution centres are changing from mainly storage facility, to value add logistics. The changing activities and labour market competition make it increasingly important to create an attractive work environment.
Robotisation effects on shape DC's (still) limited
When talking about trends within the logistics sector, robotisation and automation are mentioned frequently. Indeed we see an increasing level of automation within logistics processes. However, the effects on logistics stock remains limited. However, building distribution centres to suit fully automated occupiers is expensive and increases risk of obsolescence. As investors prefer well marketable products, which can be sold and leased to a wide audience, occupiers themselves are currently investing in built-in robotisation facilities for standard distribution centers.
About the authors
Douglas van Oers and Niek Poppelaars are jointly responsible for the Logistics & Industrial team within Savills Netherlands