The logistics market: the backbone of the global economy

The challenges emerging from the logistics market can be divided into different categories:

• General challenges:
• High construction costs
• Rising interest rates
• Limited availability of space in sought-after locations
• Challenges for consulting
• Customers expect comprehensive advice that goes beyond market knowledge and includes in-depth expertise in technology and sustainability
• Consultants must develop long-term strategies and offer flexible solutions
• Challenges for project developers in the logistics sector
• Continued high construction costs
• Longer approval procedures
• Stricter regulations in the area of sustainability
• Availability of space – especially in urban areas
• The challenge of designing projects that are both economically viable and future-proof

In addition to these general challenges, there are also specific requirements on the part of customers. They are increasingly demanding more sustainable and technologically advanced real estate. Great importance is attached to automation and digitalization, as these measures can increase efficiency. In addition, real estate is expected to be flexible in order to adapt to market changes. However, the most important criterion remains a balanced price-performance ratio.

• Location: The choice of location plays a decisive role in the logistics market. Popular and sought-after locations such as Cologne, Düsseldorf, and the Ruhr region offer ideal connections to the transport network.
• International: Germany is the leading logistics market in Europe. Thanks to its central location and highly developed infrastructure, Germany remains competitive despite strong competition from countries such as France and the Netherlands.
• Supply and demand: As top logistics locations are only available to a limited extent, supply is correspondingly scarce – but the situation is slowly easing. Demand remains stable thanks to the ongoing e-commerce boom. Rents are stabilizing at a high level, and a decline is not currently in sight.
• Globalization and geopolitical changes: The crises we have experienced in recent years have often led to supply chain problems and trade conflicts, prompting many companies to rethink their logistics processes. As a result, many have expanded their warehouse capacities to become less dependent on global supply chains. Nevertheless, international trade remains an indispensable driver of logistics, which even these adjustments cannot counteract.

Logistics has proven to be more resilient than many other asset classes. The sector has benefited greatly from e-commerce and global supply chains in particular and continues to grow. However, politically motivated deglobalization and the associated negative effects on international trade are putting increasing pressure on market stability. So far, however, the logistics industry has responded flexibly to these challenges and made appropriate adjustments.

In the future, companies and customers will have to prepare for continued high construction costs and stricter regulations in light of the increasing importance of sustainability. Geopolitical tensions and economic uncertainty will also put additional pressure on the logistics sector in the coming years.

Many are currently wondering how the logistics market will develop in the new year. At the moment, it is difficult to make any concrete predictions. However, demand remains robust, even though some e-commerce retailers are reporting declines. Relocation plans are often being scrapped, and leases are being extended for the short to medium term for the time being. In addition, outdated logistics warehouses from the 1970s to 1990s are coming onto the market, but these are in need of significant modernization.