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Motorways of the Sea: Logistics occupiers to benefit from cost savings in established port locations

wantspacegotspace.co.uk - DTZ Simon Lloyd Logistics Property•    The European Commission recently introduced an updated plan for a new unified core transport network to be established by 2030. The main aim is to ensure enhanced links between Eastern and Western Europe  
•    Improved connectivity between different modes of transport and continued growth in port activity in less mature markets will provide logistics occupiers with scope for more extensive location strategies
•    Occupiers will also benefit from cost saving opportunities in some established markets, such as Antwerp and Rotterdam where rents are expected to remain stable over the five-year forecast period
•    In contrast, smaller and less developed markets such as the Baltics are likely to witness rental growth over the next five years, due to growth in trade.

UK: Logistics occupiers are set to benefit from increased accessibility and greater port activity in less mature markets according to the latest ‘Motorways of the Sea’ report from DTZ.  Published on the 8th January 2013, the report[i] investigates the impact on logistics occupiers of recent European Commission policies affecting major European logistics markets, particularly ports.

In recognition of the key role the European transport system plays in the regions’ economic recovery path, the European Commission recently introduced a plan for a new unified core transport network to be fully functional by 2030.

Karine Woodford, Head of Occupier Research and author of the report, comments: “The updated TEN-T[ii] policy aims to improve transport connectivity, ensuring enhanced links between Eastern and Western Europe and stimulating continued growth in port activity in less mature markets. This will provide logistics occupiers with potential for enhanced location strategies. The improved connectivity will assist material handling efficiency and ultimately enable occupiers to consider establishing themselves in the vicinity of hubs which are benefitting from the TEN-T initiative.”

Looking at the cost of occupying logistics space in major ports across Europe, at present, some of the most affordable markets are the more established markets of Marseille, Antwerp and Rotterdam. In contrast, the Nordic markets of Oslo, Helsinki and Gothenburg are commanding the highest rents on the back of strong economic growth and robust occupier demand.

On average, European logistics rents are expected to grow by 0.9% per year over the next five years. Above average growth will be seen in the growing Baltic markets of Vilnius (6%) and Tallinn (2%).

Simon Lloyd, Head of Industrial Agency said: “Despite the ongoing economic uncertainty, the long-term growth prospects of the Baltic region are promising. The area plays an important role for trade within the Baltic and Nordic regions, as well as access to Russia and connections with Asian markets. ”  

Posted by The Editor (wantspacegotspace) on 15th January 2013

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