Central and Eastern Europe (CEE) will require an additional 13 million m[sup]2[/sup] of logistics space to cope with the distribution needs of the retail sector, according to a new report by CB Richard Ellis.
Central and Eastern Europe (CEE) will require an additional 13 million m2 of logistics space to cope with the distribution needs of the retail sector, according to a new report by CB Richard Ellis.
Growth in consumer spending in the CEE - far greater than the level in Western Europe - will fuel a retail boom that the logistics sector will aim to keep pace with, CBRE says in its 'Industrial and Logistics Property in the Future' report.
Undersupply of shopping centres in some areas combined with the uneven presence of international retailers will be factors behind the projected retail growth in the CEE. Serbia, for instance, is expected to see a four-times increase in shopping centre supply while countries like Bulgaria, Russia and Slovakia will see their retail markets double by 2010.
CBRE says the situation offers opportunities for investors and developers, with infrastructure improvements providing a further incentive for sector growth. Countries where the logistics shortfall is most evident include Poland, the Czech Republic, Bulgaria, Romania, Hungary and Slovakia.
Guy Frampton, EMEA head of industrial and logistics at CB Richard Ellis, commented: 'The industrial and logistics sector has seen increasing levels of activity across nearly all the European markets. Industry consolidation, network re-configuration by occupiers to achieve economies of scale, M&A activity, and movement of manufacturing bases have all played a part in this.'
