The logistics sector is not immune to macro-economic headwinds, according to Savills Netherlands’ latest Logistics & Industrial Market Update. Take-up numbers dropped by 58% y-o-y in the Netherlands in Q1 2023 as the economy slowed, and total logistics space take-up of 455,000 sq m, which was well below the average of the last 8 years.
The drop in take-up is also the result of a lack of available space, and not simply as the effect of decreasing demand.
An important additional driver of prime rents is rising construction costs for new developments, as rent increases have been particularly evident in Build to Suit (BTS) developments.
Savills’ research shows that additional industrial space can be created by more efficient use of existing business parks.
Logistics is repricing faster than other sectors, which is reflected in an increase of 150bps in GIY compared to Q1 2022.
An increasing number of occupiers will drift towards other locations as a consequence of rising rents, accelerating the trend towards a progressively scattered logistics landscape and raising the visibility of new logistics developments with the general public.
Niek Poppelaars, Co-Head Logistics & Industrial