Logistic occupancy near urban centres skyrockets

Logistic occupancy near urban centres skyrockets

Companies are now investing in logistic units near urban centres to ensure speed in delivering goods and meeting the high demand in urban areas. Robert Dobrzycki, Chief Executive officer Europe at Panattoni Europe, has no doubts that, when it comes to making a choice, «occupants want to be near the cities». Otis Spencer, CIO at P3 Logistic Park, also assumed that «we are always seeking opportunities in quality locations near urban areas». 

It is especially these areas «that have high and stable occupancy levels», revealed Ben Bannatyne, president at Prologis Europe, which guaranteed that the Madrid, Barcelona and Valencia markets remain in good shape. This might also be the moment to invest in new markets. Otis Spencer considered that e-commerce’s acceleration is more evident in countries such as Spain, Italy and Central Europe, which makes them more attractive to invest in this segment. If the levels of demand keep mounting in Portugal, Prologis president does not rule out entering the country’s logistic market.

E-commerce’s rise is not only influencing the increase in logistic absorption, but it will also «contribute to stabilise the occupancy levels on the up and to increase investment in the segment», revealed Ben Bannatyne. On this point, Tobias Kassner, Head of Research at Garbe Industrial Real, assumed that even in Germany «industrial investment levels are challenging the crisis». As a consequence, experts forecast a compression in logistic prime yields all over Europe which, according to Tobias Kassner, «should also increase prices on logistic units located near urban centres».

These experts met this Thursday during the session “Investing in Logistics, trends & opportunities” part of the virtual conference Real.X Global. This is an initiative by Real Asset Media, with the support of Iberian Property as its Media Partner.

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