73 percent of the EU population lives in urban areas, expected to increase to 77 percent by 2030. 194 billion euros in European online retail turnover will create a need for 15 million square metres of logistics space as early as 2023.
Growth is primarily driven by the urban regions, whereby the lack of space in these very centres is evident. The urbanisation of logistics, which is urgently needed for climate protection reasons, requires a network of inner-city micro-logistics areas. The sustainable infrastructure required for this must be promoted by future- and ESG-oriented companies and real estate investors.
For investors, this results in an interesting investment approach. Tailored to the future and growth market of sustainable urban logistics, this is a focus on properties suitable for micro-logistics. The investment strategy on inner-city micro-logistics achieves high growth through the dynamics of the megatrends e-commerce and Q-commerce (quick commerce). Urban logistics serves the last mile, which is primarily a unit of time. For Q-Commerce, for example, delivery times of 30 minutes or less are a prerequisite. Here, the term last mile takes on a different meaning than in classic e- commerce.
In addition to a significant shortening of delivery times in e-commerce, access to inner-city areas will also be restricted due to climate protection regulations. But then today’s so-called infill centres will change their function. Delivery centres, from which hordes of delivery vehicles are dispatched to the cities, will become central urban storage hubs. Delivery by delivery vehicles will no longer be possible due to restrictions on access to inner cities. Instead, alternative mobility concepts will be needed that are smaller-scale and electric. This means that investments will have to be concentrated in urban areas, which will lead to a focus on existing properties, as cities are usually densely built-up and there is little open space. The decisive factor, however, is the infrastructure or the transport concept.
Innovative utilisation concepts.
The investment focus should be on the mature European economies and real estate markets in Germany, France, Spain/Portugal, the Netherlands, Belgium, Italy, Poland and Austria. Target locations are then in particular metropolitan regions, i.e. Berlin, Hamburg, Munich, Paris, Amsterdam, Brussels, Milan, Rome, Madrid, Barcelona, Warsaw, Vienna and Lisbon.
Small, urban flex spaces.
The long-term, strategic target allocation should then favour micro-locations concentrated in a corridor of around one kilometre along ring roads around city centres, but which are still central inner-city locations. The focus is on small urban flex spaces, i.e. smaller properties between 1,000 – 8,000 m2 that are let and offer a stable cash flow. In addition, these spaces, e.g. former retail locations, offer the opportunity to be converted into inner-city micro-logistics.
ESG Strategy for Environment and Society.
The primary effect is a contribution to reducing CO2 emissions and thus to achieving the Paris climate goals (“Manage to green”). The secondary effect is a contribution to reducing noise and exhaust pollution from delivery traffic in urban residential areas and thus promoting social cohesion in society and improving the quality of life in urban areas. This includes, among other things, the creation of a charging infrastructure for electric mobility (especially for the means of transport used to deliver goods). Here, the electricity is generated exclusively by renewable energies.
