The decline in e-commerce sales has so far had no impact on demand for logistics space. This is according to a report published today in the German transport newspaper Deutsche Verkehrszeitung[1].
Some e-commerce companies had built up capacity in order to remain able to deliver, to ship even on a daily basis and to offer a wider range of goods. However, as demand falls, sales of existing merchandise stagnate.
In some cases, completed areas are not being used as planned, but are being sublet. This is how logistics real estate expert Kuno Neumeier, Managing Director of Logivest Munich, describes the situation on the warehouse market. Space that can be flexibly adapted quickly finds a buyer outside of e-commerce: for example, for distribution warehouses, production warehouses or other types of use.
Companies with omnichannel strategies are looking for space that can serve multiple distribution channels. The demands on these specialized properties are high, as multiple warehousing or picking strategies need to be "meaningfully combined under one roof."
So the slight decline in e-commerce is not leading to a drop in demand for modern logistics space. According to expert Neumeier, the availability of space remains the central brake on growth for the German logistics real estate market.
only available by subscription, issue MLIM/2023, page 50 ︎