Scarcity of land, possible political restrictions on land allocation and land use, and the limited capacity of the Dutch electricity network could all have a negative impact on new logistics developments in the Netherlands, according to Savills. At the same time, the international real estate advisor believes this could be an opportunity for the sector to innovate and create smarter warehouses.
Total energy capacity influences the development of new logistics properties as it determines whether new distribution centres can be built that are allowed to connect to the energy grid. Due to the prevalent 'first come, first served' principle, it is currently not possible to build new energy network dependent distribution centres in various locations across the Netherlands. Occupiers and developers who specifically want to develop new logistics real estate in these ‘hotspots’ are forced to build warehouses ‘off grid’.
An overview map developed by Savills shows that in the Dutch logistics hotspots of Schiphol, Amsterdam and Bleiswijk-Waddinxveen there is no longer any power capacity available on the energy grid. Furthermore, there is limited power capacity left in Eindhoven, Tilburg-Waalwijk, and Zaltbommel-Tiel-Geldermalsen. While this does not mean that it is impossible to develop logistics property in these locations, it does make it more difficult. At the same time, these hotspots are already under political and social pressure to limit land use for logistics and transport as is the case in Schiphol, for example. Together, this creates a challenging climate for developers.
Douglas van Oers, Co-Head Logistics & Industrial at Savills in the Netherlands, says: “The question is whether we should see this as a limiting factor. Maybe these challenges encourage much needed innovation in the sector. Lack of grid capacity does not mean that it is impossible to develop, but that we must create smarter warehouses, that use less energy, and generate their own electricity.
We see this happening more and more in practice. For example, the recently completed off grid distribution centre at Schiphol Trade Park Hoofddorp is completely self-sufficient in terms of its own energy needs. This is an incredibly exciting and innovative development.”
Niek Poppelaars, Co-Head Logistics & Industrial at Savills in the Netherlands, adds: “The current challenges are forcing developers to be innovative and creative with new developments, with a focus on ESG (Environmental, Social and Governance). As well as energy, BREEAM certification is playing an important role. In the Netherlands, only 7.6% of the logistics stock has a BREEAM label. Despite the fact that this percentage will certainly increase as new and modern developments come to the market, there is still a lot of work to be done here.”
However, in a European context, the Netherlands is doing quite well for BREEAM certifications. In France, a country with approximately the same stock, the amount of logistics properties that are BREEAM certified is only 50% of what it is in the Netherlands. In Belgium, only a handful of distribution centres are certified. The United Kingdom is the frontrunner in absolute numbers: four times as many properties have been certified here, but the stock is also 37% larger than in the Netherlands.