New research by international real estate advisor Savills shows that more than two-thirds (66.4%) of Dutch logistics properties are located in areas with insufficient electricity grid capacity. In addition, 50.3% face congestion when feeding power back into the grid, and nearly half (46.4%) are affected by both.
“Companies looking to expand or electrify are increasingly running into capacity shortages. This not only slows the transition towards renewable energy, but also undermines the Netherlands’ competitiveness as a leading industrial and logistics hub,” says Wouter van ’t Grunewold, Market Intelligence Analyst at Savills Netherlands.
The logistics sector is one of the country’s largest electricity consumers. An average logistics building uses 192.7 kWh per sq m per year – more than double that of an office (79.8 kWh/sq m/year). Regions such as Rotterdam, Moerdijk and Schiphol stand out as needing a lot of electricity as they have a high number of cold storage and 24/7 supply chain operations.
Vacancy figures confirm that energy availability is becoming a decisive location factor: vacancy rates in logistics real estate in areas with available grid capacity is just 3.7%, compared to 6.9% in congested areas. Where companies cannot, or can barely feed self-generated power back into the grid, logistics vacancy rates stand at 7.1%, versus 4.4% in areas where this is possible. The likelihood of long-term vacancy therefore rises rapidly in congested areas.
Despite grid operators planning to invest billions of euros to increase supply, pressure on the Dutch grid will not ease significantly before 2030. Savills therefore believes that the real estate sector can play an important role.
The recently adopted Energy Act (10 December 2024; phased implementation from 2025 and fully effective in 2026) enables capacity sharing through energy hubs. In addition, combinations of solar panels, batteries and smart energy contracts can provide capacity solutions. Depending on the size of the building, these measures may require substantial investments – sometimes hundreds of thousands of euros per property – but Savills believes these can help keep assets attractive and futureproof.
“Reliable energy supply is becoming just as important as location, accessibility and building quality,” says Esli Burggraaf, Property Manager at Savills Netherlands. “Without a strategy for energy flexibility, landlords risk that their building may become less valuable and harder to let.”
Jaimy Rengers, Associate Director, Building & Project Consultancy at Savills Netherlands, adds: “When developing or redeveloping logistics real estate, it is crucial to integrate energy solutions at the design stage. A mismatch between a building’s capacity and a tenant’s energy demand can lead to longer vacancy periods and lower returns. By combining solar power, batteries and collective energy hubs, we can futureproof assets and safeguard value.”
Read the full report here.