The current shortage of logistics assets in Europe may deteriorate further as investor demand for the asset class increases, experts have warned.
Speaking at a panel discussion at Expo Real earlier this month, Jeremy Plummer, head of EMEA & CEO CBRE Global Investment Partners, said that a lack of logistics facilities was a clear issue in the UK market. ‘We don't have enough houses, we don't have enough warehouses, we have too many shops and we may have too many offices,’ Plummer told delegates at an investment location event focusing on the UK.
‘In terms of logistics, July and August were record take-up months in the UK, and there seemed to be no change at all in occupier demand - in fact the requirements of big operators are growing.’
WP Carey’s executive director of international investment, Arvi Luoma, said it was a European-wide issue. ‘There are various statistics that suggest there are a lack of logistics facilities in Europe. We’re seeing some of the bigger players in the industry starting to invest in portfolios and we also like the asset class.’
Boston-based Lorenz Reibling, chairman and senior partner of Taurus Investment Holdings confirmed that it was also a growing factor across the pond.
‘It’s quite clear that shopping habits are changing with regard to internet purchases. The problem is how to we get the goods to the people in the short term - not in two days but in two hours. Go try to find logistics in central areas of New York or Texas – it’s incredibly difficult. If you find something like this I think you should buy it immediately – and then sell it on to us at a higher price!’ Reibling joked.
