The fundamental drivers of demand for big box warehousing remain strong across Europe despite the current Covid-19 pandemic, according to Tritax.
The specialist logistics investor said that the crisis has only highlighted an anticipated growing need for ‘modern, well specified, strategically located buildings close to major population centres and infrastructure’.
The statement came ahead of its Tritax EuroBox results for the period from 30 September 2019 to the 31 March 2020.
Nick Preston, fund manager of Tritax EuroBox, said: “Despite the unprecedented nature of this crisis, we believe that the fundamentals driving demand for Continental European logistics assets remain strong.
“Supply chains have been severely tested, and this has highlighted occupiers’ growing need for modern, well specified, strategically located buildings close to major population centres and infrastructure.
“Structural tailwinds driving demand in the big box logistics sector may be accelerated as a result of the impact of the Covid-19 pandemic. We anticipate that the recent marked increase in online retail usage in Europe will lead to retailers having an even greater focus on growing their e-commerce platforms
“Other emerging themes include manufacturing moving closer to Europe from the Far East in order to shorten supply chains and also companies holding higher inventory levels to protect against potential supply chain disruption.
“All of these effects are likely to lead to companies growing their logistics functions. Meanwhile, the supply of logistics facilities remains constrained due to low land availability and little speculative development.”
Regarding the running of the company at this time Preston said: “Our ongoing priority remains to ensure the safety and well-being of our management team and to work closely with our tenants to support them through this challenging period.”