Despite the still great interest in logistics real estate, it seems that part of the Dutch user market has passed its peak. Last year, for the first time since 2013, user demand fell, significantly less logistics real estate was under construction and the supply of distribution centers and storage spaces still to be let increased further. Logistics real estate nevertheless remains attractive to investors. This is evident from an analysis by NVM Business.
According to NVM Business, companies took up approximately 3.15 million m² of logistics real estate in 2020, a decrease of 8% compared to the previous year. This involved not only spaces that were rented out and sold on the free market, but also buildings that were built by companies themselves for their own account, the so-called self-construction. The fact that sales were still able to maintain a decent level was partly due to online retail spending, which rose sharply due to the corona pandemic. This had a positive effect on the demand for logistics real estate.
It was also striking that fewer distribution centers were taken on construction last year. In total, approximately 2.4 million m² entered the construction phase, against 3.16 million m² in 2019. A significant decrease occurred, especially at distribution centers with a surface area of 30,000 m² and more. On balance, the total stock of logistics real estate in the Netherlands grew by 2.28 million m² to 40.9 million m². This was because some outdated distribution centers were also withdrawn from stock.
At the same time, the supply of distribution centers still to be let increased sharply, by 867,000 m² to 3.5 million m². Supply as a percentage of total stock also increased, from 6.7% in 2019 to 8.4% at the end of 2020. An important cause of the rising vacancy rate was the fact that more real estate was under construction at risk. taken, so without the security of pre-letting. The increase in supply was greatest in Brabant and Limburg. A significant expansion also took place in South Holland.
Although the proportions in the user market were not optimal with more supply than demand, the logistics real estate market was very attractive to investors, who invested a record amount in this part of the commercial buildings market last year. In total, investors bought distribution centers for € 3.44 billion. Foreign investors were responsible for most of these investments.
Source: NVM
