Logistics Outlook 2020

Andrew Phipps

Head of EMEA Research

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Logistics Outlook 2020

E-commerce, technology, and labour trends will dictate space requirements

2020’s headline news is that logistics real estate will continue to be driven by key trends in e-commerce, technology, and labour availability. 

The logistics sector’s inherent flexibility means that it can more easily adapt to changing opportunities and needs – so we expect 2020’s outlook to be bright. 

E-commerce: As Europe’s population increasingly embraces online shopping, the shift from retail to warehouse space is gaining momentum. The average warehouse transaction size has increased from 9,000 sq m ten years ago to 13,500 sq m in 2018 – and there is also a growing demand for larger warehouses above 50,000 sq m.

Labour availability: Most occupiers say that labour availability is the No.1 priority in site selection. For that reason, companies are now taking more measures to attract and retain a skilled workforce – including new amenities and expanded benefits. However, improving the workplace environment with facilities such as breakout areas and gyms requires more space and even a degree of customisation.

Tech: As logistics increasingly turns towards technological solutions, buildings will need significant investment in off-grid energy sources to charge electric trucks, vans, and robots – as well as dedicated floor configurations and office space to accommodate them. These measures often require XXL warehouses with headroom for multiple levels.

In our Logistics Outlook report, we look closer at these trends to discover how building requirements are changing and what impact they are having.

Download now to find out how occupiers and investors can fully capitalise on 2020’s changing landscape.

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