The pandemic has accelerated investment in logistics in 2020, and CBRE believes that this initiative will continue this year as operators are looking for solutions close to the city center to serve the prosperity of online commerce.
Logistics has always been the “ideal” industry for real estate investors. The pandemic has accelerated the bets in this industry. The boom in online shopping has led to an increase in demand for space in urban areas. This movement is expected to continue this year. CB Richard Ellis estimates that “investment increases.”
“We also anticipate that substantial investments will be made in the restoration and transformation of decommissioned industrial sectors next to large cities, and land for the development of customized projects will be obtained,” said Nuno Pereira da Silva, Director of Industry and Logistics. Interviewed by Dinheiro Vivo at CB Richard Ellis.
CBRE officials tracked the major trends in the industry in 2021, the second year of the epidemic.
The space used for warehouses and logistics increased by 24% last year. Portugal has the third highest value ever. What is driving this development? Which sectors are driving growth?
In 2019, the logistics industry has shown a continuous growth trend in the economic moment the country is experiencing. Most market participants are developing analysis processes and research to reorganize their logistics infrastructure, such as new logistics platforms and new geographic locations. And the distribution network is more adaptable to reality.
By 2020, under the influence of the pandemic, these processes will be accelerated, and some of them will be realized in order to cope with more demanding distribution chains and adapt to changes in consumption habits. These factors have led to an absorption level of more than 270,000 square meters, leading to the fact that logistics operators are developing, as well as the relocation and expansion of certain logistics businesses (especially the food retail sector), and all Last Mile distribution. Operation (last mile).
The logistics industry has aroused increasing interest in real estate investment by investing heavily in this area, which is currently one of the most desirable areas in the market.
In 2020, among the registered new logistics projects, we emphasized Sonae’s expansion in Azambuja (customized projects on demand), Plataforma Logísticade Famões (speculative renovation project, covering an area of 29,000 square meters) and logistics platform Lisboa Norte (speculative project) ). 45,000 square meters).
We estimate that by 2021, investment in speculative projects will increase, which will update the existing logistics inventory, thereby contributing to the overall improvement of Portugal’s existing fixed assets. These improvements can enable our country to attract new logistics operations. We also anticipate that substantial investments will be made in the restoration and renovation of decommissioned industrial units near major cities, and land will be purchased to develop tailor-made projects.
What is the impact of the pandemic? What demand has emerged-knowledge space for employees?
In the first stage, we saw the need to respond immediately based on the adjustment of the distribution chain in response to sudden locks. In all necessary distribution chains, this adjustment has achieved great success and efficiency. Subsequently, it is necessary to re-adapt the elements that make up these distribution chains, namely infrastructure, technical support systems, fleet requalification, and the search for new spaces near urban centers, resulting in a strong demand for logistics space.