Growth food sector limits shrink logistics sector

In the first half of 2020, approximately one million m² of logistics real estate was leased or pre-let. This is a decrease of 17% compared to the same period in 2019. This decline is limited, mainly due to strong growth in the food sector. This is shown by figures from real estate advisor CBRE. Such a temporary decline in activity in the logistics market was in line with expectations. In view of the strong foundations of the market and the increasing demand for logistics space, CBRE expects a rapid recovery.

Share of food sector grows from 5% to 25%

Absorption declined in almost all sectors with one prominent exception: logistics companies in the food sector. These companies have recently rented more space. In the first half of 2020, they accounted for 25% of the absorption volume, about five times as much as in the same period in 2019. Companies in other sectors often postponed decisions on logistics accommodation and future expansion due to uncertainty about future order and goods volumes. For example, take-up from third-party logistics service providers (3PLs) fell by around 40% in the first half of 2020.

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