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Stefan Wundrak

The year ahead in logistics

With the Christmas deliveries unwrapped and the last of the Christmas log consumed, Stefan Wundrak looks at the year ahead in logistics

With the Christmas deliveries unwrapped and the last of the Christmas log consumed, Stefan Wundrak looks at the year ahead in logistics:

“The main driver of demand for logistics space in Europe is reconfiguration. Occupiers switch to more efficient and larger properties as supply chains become more sophisticated. Trade paths have been established for decades, leaving only incremental change with regards to geographical locations. In Asia, the main driver is rising consumption and growing trade. With fast population growth and large investments in new infrastructure, key locations are in flux and subject to significant demand shifts. These open opportunities, but also pose significant investment risks.

In Europe we favour German logistics to take advantage of the strong occupier market, and French and Dutch logistics to act as a yield play. The UK logistics market is still Europe’s top investment due to its unrivalled depth and long leases. Poland is the key market to look out for outside of the core. However, the logistics sector high income remains the main attraction for institutional investors. The internet revolution in retail has brought logistics into the limelight. Increasing internet sales across the developed world continue to fuel strong demand for centrally located hub locations and packet distribution centres in urban areas. However, manufacturing firms use a third of overall logistics stock, and the positive impact of global trade and re-shoring to developed countries should not be underestimated as a driver for logistics space demand. A key challenge for investors is the increasing demand for highly specialised space by logistics occupiers, which clashes with their need for standardised and flexible buildings.”

Stefan Wundrak

Stefan Wundrak

Head of European Research

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