Thursday 23rd Nov 2017 - Logistics Manager

Huge growth in urban logistics space vital to meet online demand

Huge growth in urban logistics space is needed to meet the increasing demand for online deliveries, according to research by property company Cushman & Wakefield.

The research forecasts a 69 per cent increase in parcel volume in Europe by 2021. London has the biggest current space requirement in Europe (870,000 sq m). This is predicted to grow to more than 1,200,000 sq m by 2021 – which is a huge increase of 42 per cent.

The Cushman & Wakefield report also found that Europe’s urban delivery costs total €70billion and are expected to grow 7-10 per cent by 2021. Madrid and Barcelona will see their required space increase by 102 per cent.

“As more of us do our shopping online, it’s vital that our large cities have the capability to handle the increase in parcel capacity across Europe,” said Lisa Graham, head of EMEA logistics research and insight at Cushman & Wakefield. “Our Urban Space Model shows that substantial growth is expected across the board. The fact that a 42 per cent rise in the UK is the smallest increase speaks volumes for the direction the market is heading.

“Looking ahead, it will be crucial for online retailers and parcel companies to use urban logistics space to meet rising customers’ expectations in terms of speed and reliability of delivery, while at the same time reducing costs to justify higher rents.”