The unexpectedly strong demand for return centres has ignited the market for built-to-suit logistics schemes, according to Ian Worboys, CEO of logistics developer P3.
Speaking during a recent interview with PropertyEU TV, Worboys said P3 currently has 240,000 m2 under construction in four countries and that it recently received requests for 11 warehouses in just one month. 'This has never happened before in our history!'
Some logistics operators are developing separate sections for returns in their warehouses, while others require dedicated centres built exclusively for returns, he added. Needs in this segment can be quite substantial, he said, pointing to one client in the Czech Republic which requires a return centre that will employ at least 3,000 people.
'The effect on the built-to-suit market is that it is benefiting from the lack of supply. No one has been building for the last seven years,' he pointed out.
Due to scarcity of supply, rents for existing buildings are rising sharply, Worboys noted. 'Where people can’t have built-to-suit facilities, because of the strong demand, they’re forced to rent.'
