Global real estate advisor CBRE has warned that there is likely to be a significant shortening and integration of supply chains, increasing the demand for warehouse space.
In its report ‘The Changing Flow of International Trade’ CBRE advises investors that retailers and wholesalers are set to store months’ rather than weeks’ worth of inventory closer to population centres and service locations.
It also states that manufacturers will look to diversify supply chains so as to be less reliant on specific geographies.
Jack Cox, head of industrial logistics, EMEA, at CBRE said: “The logistics sector has proven to be the silver lining of the Covid-19 pandemic as an increased reliance on e-commerce has further increased demand for warehouse space.
“However, core logistics hubs across Europe remain land-constrained. This coupled with a disruption to supply chain dynamics means we are likely to see a continued diversification of logistics centres across Europe,” he added.
The report also states that in Europe there had been an increase in retailers positioning distribution hubs near Mediterranean ports, rather than centralising predominantly Asian imports at ports in Northern Europe. It said that consequently, Barcelona, Valencia and Marseille had all seen a boost in demand for logistics space.