Investors’ appetite for logistics assets will remain strong in 2018 as investors continue their push into the sector in a bid to diversify their portfolios, says Robert Dobrzycki, CEO of Panattoni Europe.
What do you hope and fear the most in the coming year in terms of impact on your business?
The outlook for the European industrial market is very good. Not only is demand strong for both big box-type distribution centres (DCs) for global enterprises and multi-tenant projects in varied markets, but capital is also there to back up the investments.
We are registering strong international investor appetite for logistics real estate fuelled by e-commerce growth and availability of institutional capital in the global market. This is driving increased cross-border investment in the sector. Global investors are eager to diversify their portfolios by adding logistics assets and, going by the current trends, this interest should not decrease in 2018.
Will you be expanding or scaling down your business in 2018?
We are in the right place, at the right time. Our sector is booming so we will definitely take advantage of that and follow the demand and trends. Last year we registered record numbers in CEE and we plan to develop our business further in Germany and especially the UK. High-quality logistics assets are in demand and we plan to deliver the desired platforms throughout Europe.
What is set to have the biggest impact on your business?
Technology will have the biggest impact on our industry. The e-commerce boom and the infrastructure needed to serve this flow of products is possible thanks to innovative, advanced systems. Therefore, more and more sophisticated warehouses are appearing on the map, dominated by automation and robotics to make the process as efficient as possible.
What will trigger the next downturn in the European real estate industry?
The large imbalance between liquidity and real estate fundamentals.
