The final rankings show that Rotterdam, Barcelona, Valencia, Antwerp and Hamburg top the European rankings as the most attractive port locations for logistics investment. We anticipate increased investor demand for logistics assets in corridors linking these locations.

Rotterdam achieved the highest overall score on the European Port Logistics Opportunity Index and scores have been reweighted to base of 100.

• Rotterdam (NL) – The Netherlands economic growth is forecast to outperform the rest of Europe and will also become Europe’s fastest-growing population over the next five years, which will create new demand for prime logistics space. A shortage of new development land and the tightened restrictions on building permits will help to sustain upward rental pressure in the market, and maintain low logistics vacancy. Strong freight railway links to the rest of Europe also help give Rotterdam the top spot.

• Barcelona (ES) – Increased international trade has grown Barcelona’s port capacity by 70% over the past five years, the fastest growth of the top five markets. Relatively low national minimum wages will provide more favourable conditions for logistics operators to expand, given the high availability of workers in the labour market. Spain has a proportionally lower level of e-commerce penetration, but by 2023, we expect this to be hovering around the 10.7% tipping point. With a metropolitan population of five million and a shortage of brownfield land, prime logistics yields remain attractively priced to the rest of Europe at 5.15% (Q4 2019).

• Valencia (ES) – Prime rents are currently in the region of €54 per sq m, lower than Barcelona, and this follows rental growth of 13% over the past three years. Spain’s international trade growth is also forecast to outperform Europe’s average over the next two years.

• Antwerp (BE) – Antwerp’s 11.1 million container throughput in 2018 marked 29% growth over a five year period, as Belgium’s retail sales growth is forecast to remain resilient at 3.6% per annum, driven by above-average population growth. Rising wage costs will remain a challenge for operators looking to expand. Belgium’s logistics vacancy rate remains low, and solid road and rail infrastructure provides opportunities for investment with prime yields remaining attractive at 5-5.25%.

• Hamburg (GE) – Although Germany’s industrial economic output has contracted recently, Hamburg’s prime rents have risen by 7% over the past three years, and due to the shortage of space, we expect further rental growth to come to the fold. Hamburg’s prime logistics yields moved in 50bps YoY to 3.7% at Q4 2019, though, secondary yields hover at 5.2% which we expect to compress further. Europe’s highest-scoring rail network and technology enhancements at the Port of Hamburg will increase efficiency and create further need for warehouse space.

_{Read the articles within Spotlight: European Port Logistics - Where Next To Invest? below.}