European logistics occupiers turn more selective as flight to quality intensifies
XLRE•Savills said European logistics occupiers are prioritizing quality, power capacity, specification and connectivity. In a survey of more than 600 participants, 47% of occupiers expected to expand warehouse footprints in one to three years, while 54% expected to vacate sites.
1. Occupier priorities shift
Savills flagged a more selective European logistics leasing market, with occupiers prioritizing asset quality, power capacity, specification and connectivity. In the survey, 38% of occupiers reported improved conditions and 8% expected deterioration.
2. Power and space needs
While 47% expected to grow warehouse footprints in one to three years, 54% also expected to vacate sites. Some 89% expected higher power requirements, and more than 25% already reported insufficient capacity in existing buildings. Savills said demand for larger, highly specified buildings is increasingly mismatched with developers’ shift toward smaller mid-box schemes due to constraints.
