90% of occupiers of logistics space prepared to pay premium for a sustainable building
DEMAND FOR LOGISTICS SPACE CONTINUES TO RISE, DESPITE ECONOMIC HEADWINDS
The economic headwinds have had no effect on the total demand for logistics space in the Netherlands. Of the current users of warehouses, 60% expect that they will be needing even more square meters in the next twelve months. The need for sustainable logistics real estate is considerable. For example, almost 90% of users of logistics space indicate that they are willing to pay more for a property that has a green building certification. Almost 70% agree with a rental surplus of 5% or more. These are some of the primary conclusions of the ‘Logistics and Supply Chain Confidence Index Netherlands, 2023’ survey among logistics service providers, manufacturers and retailers, conducted by research agency Analytiqa on behalf of Panattoni Netherlands and Savills, which was also responsible for analyzing the results.
The Netherlands is facing economic headwinds in the short term. However, on average, users of logistics space are still very confident in the economic outlook, with more than half expecting an increase in profits in the next twelve months. This confidence translates directly into a demand for logistics space, with approximately half of respondents indicating that they will need more warehouse space in 2023. 68% of logistics service providers expect to need more square meters; among manufacturers and retailers this is 48%.
Pay a premium for green certified buildings
A large majority of the companies surveyed (87%) state that they will invest more in sustainable initiatives in the supply chain. For this, various reasons are given, but the main motivation for taking measures is to be able to comply with specific legal requirements. Across the board, users of logistics space are finding it increasingly important that the building they use has a green building certification, even if it means that they have to pay a premium. Most users are willing to pay a rental surplus of 5%, with 25% of manufacturers and retailers saying a surplus of more than 10% is not a problem.
Raymond Frederiks, Market Intelligence Analyst at Savills in the Netherlands: “Our in-depth analysis of the 2023 survey results reveals a clear picture: the Logistics Confidence Index is set at 57.4, indicating above-average confidence in the market. 52% of users even expect profit growth in the next 12 months. What is striking is the divergence between logistics service providers on the one hand and manufacturers and retailers on the other. In the first group, 48% expect deteriorating market conditions, compared to 8% in the other group. The demand for space, in particular sustainable space, seems promising for the logistics real estate market."
Jeroen Gerritsen, managing director at Panattoni Netherlands: “The survey shows that sustainability is a growing priority in the logistics and real estate sector. The willingness of tenants to pay premiums of 5% or more for green certified buildings and green energy reflects that the pace in which the logistics real estate sector is becoming sustainable is accelerating in the short term. The question is: what does the concept of sustainability mean for tenants on a daily basis? The internationally recognized sustainability certificate BREEAM-NL provides tenants who are looking for a measurably sustainable building with support and certainty. That is why we have developed 100% of our developments at least in accordance with BREEAM-NL Very Good since we were founded in 2019. Panattoni continues to raise the bar for new developments. The first BREEAM-NL Excellent building, Panattoni Park Twente, will open its doors in the spring of 2024.”
Expanding the amount of logistics meters is a challenge for many companies, especially due to the very low availability at traditional logistics hotspots. Finding suitable logistics space is an important challenge for 79% of logistics service providers, compared to 50% of manufacturers and retailers. Douglas van Oers, Co-Head Logistics & Industrial of Savills in the Netherlands: “The Dutch logistics user market has grown enormously over the past five years, partly due to the rise of e-commerce, nearshoring, new inventory strategies and emerging industries. The sharp decline in available logistics space confirms this trend. In addition to well-known hotspots such as Waalwijk, other logistics locations are emerging. An example is the XL Business Park in Almelo, which is fully committed to sustainability as an innovative new business park.”
About the survey
The ‘Logistics and Supply Chain Confidence Index Netherlands, 2023’ survey was conducted by research agency Analytiqa on behalf of Panattoni Netherlands and Savills, which was also responsible for the analysis of the data. Analytiqa has conducted a survey of 22 questions among both logistics service providers (hereafter LSP’s), as well as manufacturers and retailers. The main questions in the survey apply to current business conditions, macro-economic circumstances, ESG credentials and current housing needs. A total of 50 occupiers were surveyed, including 25 logistics service providers and 25 manufacturers and / or retailers.
About Panattoni Netherlands
Panattoni is one of the world's largest private developers of industrial and logistics real estate. Panattoni was founded 30 years ago in the United States by Carl Panattoni. To this day, Panattoni remains a privately owned family business. Since its founding, the organization has grown steadily - initially in the US and Canada, but later also in the UK and Europe. The company has 53 offices in North America, India and Europe. Panattoni has had a prominent presence on the Dutch market since 2019. In addition to offering state-of-the art storage and distribution facilities, Panattoni offers related services, including asset management and property management. Sustainability is - also in the Netherlands - a spearhead of the company. All developments have the BREEAM sustainability certificate. They are natural gas-free and, where possible, sustainable building materials have been used in their development. With each new development, Panattoni investigates the optimal use of the solar potential of the roof in question.
Savills is a global real estate services provider listed on the London Stock Exchange. Savills operates from over 700 owned and associate offices, employing more than 40,000 people in over 70 countries throughout the Americas, the UK, Europe, Asia Pacific, Africa and the Middle East, offering a broad range of specialist advisory, management and transactional services to clients all over the world.