The Unprecedented Expansion of European Warehousing

European logistics real estate is currently undergoing a significant growth phase, marked by an impressive 96% of tenants planning to expand their capacities even faster than last year. This robust expansion defies economic uncertainties and is primarily fueled by surging demand in e-commerce, the critical need for cold storage facilities, the complexities of reverse logistics, and the widespread adoption of automation technologies. This sustained momentum underscores the resilient nature of the logistics market, with third-party logistics providers (3PLs) and parcel services continuing to be key drivers of demand across the continent.

Strategic Priorities: What Drives Location and Building Choices Today

The decision-making process for commercial real estate has evolved beyond simple cost considerations. While rent remains an important factor for buildings, it is no longer the top priority for location. Businesses are now strategically focusing on a broader range of factors, demonstrating high selectivity. For location, up to seven factors are considered, including crucial elements like labor availability, proximity to efficient transport links, energy security, and the potential for future expansion. Similarly, when selecting a building, tenants evaluate up to five key criteria, ensuring that their chosen space aligns with long-term operational and strategic goals.

Embracing Sustainability: The Future of Industrial and Logistics Properties

Sustainability is rapidly becoming a cornerstone of commercial real estate decisions. There is a strong, growing preference for investing in zero-carbon ready facilities, with 65% of tenants prioritizing these over just eco-certified buildings (47%). This indicates a clear commitment to environmental responsibility and energy efficiency. Logistics properties, in particular, are seen as highly adaptable and are increasingly prioritizing green energy solutions, reflecting a proactive approach to sustainable operations and long-term value.

Diverse Trends Across the European Commercial Real Estate Landscape

While logistics leads with strong growth, other commercial property segments exhibit varied trends across Europe.

Logistics Resilience Contrasts with Evolving Office Markets

Unlike the resilient logistics sector, the office segment faces different challenges, including a surplus of space and a slower return to full physical office occupancy. However, there is a notable and growing interest in modern, flexible, and green office concepts, particularly in cities like Bratislava, signaling a shift towards more adaptable and sustainable workspaces to meet evolving business needs.

Mixed Fortunes in Retail Real Estate

The retail sector presents a mixed picture. Premium shopping centers continue to perform well, attracting strong footfall and investment. In contrast, smaller retail units often struggle, highlighting a bifurcation in the market where location, concept, and digital integration play an increasingly critical role in success.

Source: reality.trend.sk